question archive 1)The above situation is an example of: A) an external economy
Subject:EconomicsPrice: Bought3
1)The above situation is an example of:
A) an external economy. C) the exclusion principle.
B) a spillover cost. D) a spillover benefit.
2)Which of the following would be most appropriate for dealing with this problem?
A) Levy a tax on the consumers of paper products and use the tax revenues to conduct research on new energy sources.
B) Levy a tax on the consumers of electricity and use the tax revenues to subsidize the consumers of paper products.
C) Levy a tax on the producers of electricity and use the tax revenues to clean up the river.
D) Levy a tax on the producers of paper products and use the tax revenues to clean up the river.