If the Economy Relies Entirely on the Market Mechanism to Answer

Multiple Choice

If the economy relies entirely on the market mechanism to answer the WHAT,HOW,and FOR WHOM questions,it tends to

A) Overproduce goods that yield external benefits and overproduce those that generate external costs.
B) Overproduce goods that yield external benefits and underproduce those that generate external costs.
C) Underproduce goods that yield external benefits and overproduce those that generate external costs.
D) Underproduce goods that yield external benefits and underproduce those that generate external costs.