Author Question: To correct for the underproduction of products with positive externalities, the government must ... (Read 86 times)

Hungry! · **on:** Jun 29, 2018

To correct for the underproduction of products with positive externalities, the government must

A) provide the incentives for the private sector to produce and consume the good.
B) provide tougher regulations on the industry.
C) increase taxes on the industry.
D) fine the industry.

Question 2

According to the circular flow of income and output, saving causes

A) total output to fall.
B) consumption expenditures and total output to fall.
C) consumption expenditures to fall short of total output.
D) investment spending to fall.