Ways in which government can encourage positive externalities inlcude:
Group of answer choices
funding for research
vouchers
all are incentives to encourage positive externalities
subidies
Correct option - all are incentives to encourage positive externality.
Funding for research - with research new technology and innovation can be introduced. Which benefits society and many ways. Like new method of farming and farming tools developed for the farmers which will increase it's productivity. Developing flu shots and many more things.
Voucher - voucher is a token food stamp, food stamp will increase the effective demand of poor family which increases the over all demand after the market.which is good for economy.
Subsidy - when part of a expenditure is paid by government. For eg. Subsidy in college fees. It encourages more and more students to enroll and benefit the society as more educated citizens.
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