Which of the following are devices that the government uses to achieve a more efficient allocation of resources in the presence of external benefits?
A) taxes, private subsidies, and regulation
B) public provision, taxes, and private subsidies
C) regulations, public provision, and vouchers
D) vouchers, public provision, and private subsidies
E) public provision, taxes, and vouchers
Question 2
The above figure shows the U.S. market for replacement cell phone batteries. Area E is the
A) producer surplus when there is free trade.
B) deadweight loss from tariff.
C) tariff revenue.
D) increase in producer surplus due to the tariff.
E) gain in total surplus due to the tariff.
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