Economics Questions

a. Which of the following situations exhibits a positive externality? . Alan purchases a new watch as a gift for his father. O Sean spends the afternoon cleaning his garage. Richard renovates a dilapidated historic home in the center of town. b. When there is a positive externality associated with the market too little is produced. O too much is produced. O the socially optimal amount is produced. c. Governments may stimulate the economy to move toward the socially optimal output by O taxing the product. O subsidizing the product. O implementing a price ceiling