Multiple Choice
In a competitive market, if the production process involves an external cost, such as pollution of the environment, the market will
A) produce the economically efficient outcome.
B) result in a market price that is higher than the efficient one.
C) register a price that is lower than the efficient one.
D) result in too little of the good being produced compared to the ideal efficient outcome.
Correct Answer:
Verified
Correct Answer:
Verified
Q28: "Government failure" exists when political decision-makers choose
Q29: Sparkle-Bright toothpaste is a new product that
Q30: Many external costs occur because<br>A) people do
Q31: A good that is both nonexcludable and
Q32: Suppose external benefits are present in a
Q34: Which of the following contributed to the
Q35: If education creates external benefits,<br>A) actual market
Q36: The "free rider problem" occurs in connection
Q37: During 1979-2005, the mortgage default rate<br>A) was
Q38: Which of the following reforms would reduce