Multiple Choice
Market failure occurs when
A) an optimal allocation of society's resources is not achieved
B) negative externalities are taken into consideration
C) positive externalities are taken into consideration
D) government failure is at its worst
E) all social costs are included in the prices of goods and services
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Which of the following statements is not
Q6: The ideal pollution tax adds how much
Q7: Social cost is<br>A) private cost minus external
Q8: In the presence of positive externalities, the
Q9: To correct a market failure, society typically
Q11: Externalities are consequences visited upon those individuals
Q12: If smokers knew the information cigarette firms
Q13: The cost that society incurs in cleaning
Q14: Explain why a subsidy will not solve
Q15: The creation of private property rights corrects