A negative externality will cause a private market to produce
a. less than is socially desirable.
b. more than is socially desirable.
c. exactly the quantity that is socially desirable.
d. less than the same market would produce in the presence of a positive externality.
b
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The rate of unemployment is found by
A) dividing the number unemployed by the number of people in the labor force. B) dividing the number employed by the number of people in the labor force. C) dividing the number unemployed by the number employed. D) dividing the number employed by the number unemployed.
The second largest category, by relative importance, in the CPI calculation is
a. housing. b. apparel. c. transportation. d. medical care.
By opening up to foreign markets two things countries generally experience are:
A. increase in negative trade outcomes with that nation and finding customers who generally pay less for their products. B. access to a smaller array of new products and increase in negative trade outcomes with that nation. C. access to a smaller array of new products and saving money through access to cheaper goods. D. saving money through access to cheaper goods and finding new customers for their products.
Refer to the diagrams for two separate product markets. Assume that society's optimal level of output in each market is Q0 and that government purposely shifts the market supply curve from S to S1 in diagram (a) on the left and from S to S2 in diagram (b) on the right. The shift of the supply curve from S to S1 in diagram (a) might be caused by a per-unit
What will be an ideal response?