Multiple Choice
When external benefits are present in a market:
A) the market is more efficient than if the externalities were not present.
B) the market outcome is inefficient.
C) overall social surplus is maximized because others are gaining in addition to the market consumers.
D) the external benefit must be offset by an external cost.
Correct Answer:
Verified
Correct Answer:
Verified
Q30: Figure: Negative Externality <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3377/.jpg" alt="Figure: Negative
Q31: Using a demand and supply diagram, demonstrate
Q32: Edgar's expected private benefit from the flu
Q33: An external cost is a cost paid
Q35: Command and control policies ensure economic efficiency.
Q36: The advantage of using command and control
Q37: Use the following to answer questions:<br>Exhibit: EPA
Q38: An example of a transaction cost for
Q39: The market for honey is:<br>A) inefficient since
Q139: Government intervention is necessary to correct all