If the consumption of a product or service involves external benefits then the government can improve efficency by:______

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Desmariesin3184 Desmariesin3184

22-07-2022
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If the consumption of a product or service involves external benefits then the government can improve efficency by:______

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-07-30T16:38:32+02:00

If the consumption of a product or service involves external benefits then the government can improve efficency by providing a subsidy Transportation-related air pollution is one example. The expense of air pollution to the rest of society is not the responsibility of either the manufacturers or the users of motorized transportation.

External benefits of education are societal advantages that trickle down to other members of society and future generations. These benefits include decreased government spending on health care, welfare, and incarceration; increased democracy, human rights, political stability, and social capital; decreased crime and poverty;

Environmental advantages; improved global competitiveness; and the spread of new ideas and technology. These pave the way for fresh beginnings in families and nations. External social benefits are thoroughly identified and economically valued, demonstrating that indirect effect externalities are included in both private market and nonmarket benefits.

When the direct benefits to society are taken into account.

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