Multiple Choice
A negative externality (that has not been internalised) causes the
A) optimal quantity to exceed the equilibrium quantity.
B) equilibrium quantity to be either above or below the optimal quantity.
C) equilibrium quantity to equal the optimal quantity.
D) equilibrium quantity to exceed the optimal quantity.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: A positive externality generates<br>A) a social cost
Q24: When an individual buys a car in
Q49: The government engages in a technology policy<br>A)
Q50: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8829/.jpg" alt=" -Refer to the
Q52: Which best describes making political decisions to
Q52: If a market generates a negative externality,
Q55: When a group of neighbours ask a
Q56: Which of the following is not considered
Q56: A Pigovian tax on pollution<br>A) sets the
Q183: The Coase theorem suggests that efficient solutions