Subsidised educational loan and health care are examples of used in case of externalities.

pigouvian subsidy

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pigouvian tax

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positive

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negative

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Solution

The correct options are
A pigouvian subsidy
C positive
The government can provide subsidies or other forms of regulation to correct the underproduction problem associated with positive externalities.

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Similar questions

Education and health care facilities promotes skill formation and therefore efficiency and ability to work of the people increases.

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