Which of the following is motivated by an equity concern?
A) The United States protects intellectual property rights, allowing inventors to prevent others from using their inventions without payment.
B) Some U.S. colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need.
C) Following the removal of subsidies in urban water use, household demand for water decreased quite significantly in Bogor, Indonesia.
D) In November 2003, the Federal Communications Commission implemented the local number portability rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region.
Question 2
State and local governments subsidize college students with grants and low-interest loans. The loans and subsidies are examples of
A) emission allowances. B) Coase subsidies.
C) Pigovian subsidies. D) positive externalities.
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