Multiple Choice
In a free-market economy, a product which entails a positive externality will be
A) overproduced.
B) underproduced.
C) produced at the optimal level.
D) provided solely by the government.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q196: If a good that generates positive externalities
Q197: What two conditions must hold for a
Q198: (Last Word) A cap-and-trade program<br>A) assigns a
Q199: It has been proposed that a government
Q200: Which of the following does not illustrate
Q202: If the consumer is willing to pay
Q203: Credit bureaus provide credit histories to banks
Q204: Other things equal, a fall in the
Q205: At equilibrium in a market for a
Q206: External benefits in consumption refer to benefits