If production of a good produces an external benefit, in order ...

[scienceeasy]

If production of a good produces an external benefit, in order for the marginal social cost to equal the marginal social benefit
 
  A) the good should be taxed.
  B) permits should be required to purchase the good.
  C) the good could be subsidized.
  D) the government needs to take no action.

Question 2

The supply of land is
 
  A) perfectly elastic.
  B) elastic, but not perfectly elastic.
  C) perfectly inelastic.
  D) inelastic, but not perfectly inelastic.

[smrerig]

Answer to Question 1

C

Answer to Question 2

C

[scienceeasy]

Correct answers!

[smrerig]

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