Government intervention is sometimes used to reduce the external costs of production.
Answer the following statement true (T) or false (F)
True
Externalities will not be corrected purely by the market; some intervention of government is necessary to correct them.
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A market economy produces the optimal amount of each good at least cost where:
A) P > ATC. B) P = ATC. C) P > AVC. D) P = MR.
To maximize utility consumers should buy goods and services to the point where the marginal utility of each item consumed is maximized
Indicate whether the statement is true or false
An improvement in technology would cause each of the isoquants in a firm's isoquant map to shift out away from the origin
Indicate whether the statement is true or false
A budget surplus is the:
A. amount of money a government spends beyond the net revenue it brings in. B. amount of net revenue a government brings in beyond what it spends. C. total amount of money that a government owes. D. total amount of money that a government receives from a tax increase.