Multiple Choice
Which of the following statements is true of external costs?
A) External costs should not be corrected since people will bear the costs whether they are corrected or not.
B) There are no good ways to correct for the external costs.
C) When external costs exist, the price of the good will be deceptively low leading to an overallocation of resources.
D) External costs should only be corrected for if the correction will not increase the market price.
Correct Answer:
Verified
Correct Answer:
Verified
Q128: The non-exclusion principle means<br>A) no one can
Q136: Government outlays include all of the following
Q169: A government-sponsored good is one that<br>A) everybody
Q233: Society is likely to over-allocate resources to
Q239: Which of the following is a transfer
Q281: Private goods are goods<br>A) that carry a
Q349: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5013/.jpg" alt=" A shift from
Q350: Which of the following is an example
Q358: Which event was most important in promoting
Q359: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5013/.jpg" alt=" -Refer to the