If the market for this good was in equilibrium at Q 2 but the socially optimal output was Q 1, the government could best remedy this —— of resources by legislating a —— on —— of the good.
If equilibrium output exceeds the socially desirable output, resources are overallocated to production of this good. This negative externality can be fixed with a tax on producers or sometimes on consumers.
269 MCQ for effective preparation of the test of Microeconomics of Economics section.
Read the MCQ statement: If the market for this good was in equilibrium at Q 2 but the socially optimal output was Q 1, the government could best remedy this —— of resou .... of the good. , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 107-4117.