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AP® Microeconomics

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Moderate

Public Good: Government Response

APMICR-KSVGLN

Which of the following government responses to a public good would lead to increased efficiency in the market?

A

Laws prohibiting production of the good

B

Establishment of an effective price ceiling

C

Government provision of the good

D

Imposition of a per-unit excise tax on production of the good

E

Lump-sum tax on production of the good