Question

Where there are spillover (or external) benefits from having a particular product in a society, the government can make the quantity of the product approach the socially optimal level by doing the following except: A. Subsiding the buyers of the productB.Taxing the sellers of the productC. Subsidizing the sellers of the productD. Providing the product itself

Answer 1

The correct answer is B; Taxing the sellers of the product.

Further Explanation:

The seller cannot be taxed for the product. The product makers were already taxed first by the government so they can't tax the product again. Spillover benefits can be both positive and negative.

By taxing the seller of the product the government is not approaching the socially optimal level. Many times the costs of the spillover may affect a third party and can cause extra costs to someone not even directly related to the product.

Learn more about the spillover benefits at https://brainly.com/question/12263191

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