Multiple Choice
When externalities cause markets to be inefficient,
A) government action is always needed to solve the problem.
B) private solutions can be developed to solve the problem.
C) given enough time, externalities can be solved through normal market adjustments.
D) there is no way to eliminate the problem of externalities in a market.
Correct Answer:

Verified
Correct Answer:
Verified
Q47: According to recent research, the gas tax
Q145: Which of the following is a difference
Q146: Assume that your roommate is very messy.
Q147: What is the difference between command-and-control policies
Q148: Table 10-1<br>The following table shows the private
Q149: Education yields positive externalities. For example,<br>A)colleges and
Q151: Figure 10-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 10-7
Q152: Suppose that flu shots create a positive
Q154: Corrective taxes are typically advocated to correct
Q155: Private markets fail to account for externalities