Question

Government corrects____externalities by subsidizing the activity, as they do with____corrects____externalities by regulating or taxing activity in order to____pollution provides_____goods like national defense because of the free-rider problem promotes_____because markets with few firms tend to be inefficient provides assistance to those in need in order to improve____attempts to pursue macroeconomic goals, including____, _____, and____.

Answer 1

• Government corrects positive externalities by subsidizing the activity, as they do with education.

Positive externalities are encouraged by subsidizing them so that they increase the more.

• corrects negative externalities by regulating or taxing activity in order to discourage pollution.

Negative externalities are punished by regulation and taxation to discourage their spread.

• provides public goods like national defense because of the free-rider problem

Public goods need to be provided because everyone needs access to them and not just a select few.

• promotes competition because markets with few firms tend to be inefficient.

Monopolies have been shown to be inefficient as they do not have any competition that inspires innovation.

• provides assistance to those in need in order to improve equity.

• attempts to pursue macroeconomic goals, including low unemployment, strong growth, and stability.

It is a government's duty to ensure that the country is experiencing certain macro economic goals such as low unemployment, strong growth and economic stability.

Note: Options were too much to attach to answer as they required multiple pictures so I hope you have access to those options.