Multiple Choice
Consider two goods - one that generates external benefits and another that generates external costs. The actual market outcome would
A) result in a price that is lower than the efficient price for both goods.
B) result in a price that is higher than the efficient price for both goods.
C) result in a price that is lower than the efficient price for the good with an external benefit and a price that is higher than the efficient price for the good with an external cost.
D) result in a price that is higher than the efficient price for the good with an external benefit and a price that is lower than the efficient price for the good with an external cost.
Correct Answer:
Verified
Correct Answer:
Verified
Q122: As short-term interest rates began to rise
Q123: Which of the following best explains why
Q124: The government sometimes provides public goods because<br>A)
Q125: When consumers cannot tell the difference at
Q126: An item purchased often by the same
Q128: How does an additional individual's consumption of
Q129: Anne has just purchased a new house
Q130: Which of the following contributed to the
Q131: When production of a good generates external
Q132: Government provision of goods and services that