AP Microeconomics › Effect on Socially Optimum Levels
Which of the following is true of public goods?
To establish a socially optimal price for a natural monopoly, the government should select the price level at which ________________.
Which government policy is typically used to correct a negative externality?
For years a factory has been producing waste that it dumps into a nearby river. This waste negatively affects fishermen nearby. What government policy is most likely to get the factory to produce at the socially optimum level?
For years, producers in a perfectly competitive industry have been pumping waste into the air without penalty. If the government takes action to shift production to a more socially optimal level, what is the likely effect on equilibrium price and quantity in the market?
In the absence of some public or private intervention, public goods will ____________ .
Which of the following policies is most likely designed to address a positive externality?
Which of the following policies is most likely designed to correct for a negative externality?
The Gini coefficient is a measure of ________.