If the government is successful in internalizing the external costs of production in a market, then:
a. social costs will equal private costs.
b. an inefficient level of output will be produced.
c. social costs will exceed private costs.
d. social costs will be less than private costs.
e. social costs will fall to zero.
a
You might also like to view...
If the quantity of money supplied is greater than the quantity of money demanded, then the
A) price of financial assets falls. B) money supply decreases. C) nominal interest rate rises. D) nominal interest rate falls. E) price level falls.
In the Keynesian model, a decline in interest rates will cause investment to
A) increase. B) decline. C) remain unchanged. D) move erratically, depending on the interest rate effect on saving.
When an equal percentage increase in the factors of production raises real GDP by the same percentage, the production function has the characteristic known as
A) constant returns to scale. B) constant marginal productivity. C) diminishing marginal productivity. D) increasing returns to scale.
If two persons trade, one must gain at the expense of the other
a. True b. False Indicate whether the statement is true or false