APFIVE Government Intervention and Deadweight Loss
All of the following statements regarding government intervention to reduce deadweight loss are true EXCEPT:
A
Government policies such as taxes and subsidies are employed to move market outcomes closer to the socially optimal level where MSB equals MSC.
B
Corrective interventions are aimed at minimizing the deadweight loss that results from market inefficiencies.
C
Implementing a per unit tax on a good with positive externalities effectively reduces deadweight loss by internalizing external benefits.
D
In the presence of negative externalities, a per unit tax can align the marginal private cost with the marginal social cost by shifting the supply curve upward.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | vasishtajai88 | 2 | 2 | 0m 00s | 200 |
| #2 | hwwch20101020 | 2 | 3 | 0m 00s | 190 |
| #3 | samliu0221 | 1 | 1 | 0m 26s | 74 |
| #4 | jasmineleung1007 | 1 | 2 | 9m 03s | -453 |
Items per page:
10
1 – 4 of 4