Which of the following statements is not correct?
a. Government policies may improve the market's allocation of resources when negative externalities are present.
b. Government policies may improve the market's allocation of resources when positive externalities are present.
c. A positive externality is an example of a market failure.
d. Without government intervention, the market will tend to undersupply products that produce negative externalities.
d
You might also like to view...
Contractionary monetary policy shifts the reserve supply schedule inward
a. True b. False Indicate whether the statement is true or false
Which of the following operate under a fixed-rate unified currency system?
a. the 12 countries of the European Monetary Union b. the 50 states of the United States c. Hong Kong, Panama, and the United States d. all of the above
What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?
a. The demand for shotgun-shell ammunition will increase. b. The demand for shotgun-shell ammunition will decrease. c. The demand for shotgun-shell ammunition will be unaffected. d. The supply of shotgun-shell ammunition will increase.
The marginal rate of substitution is the
A) rate at which the consumer can exchange one good for the other.
B) change in the quantity of one good that just offsets a one-unit change in the consumption of another good such that the total satisfaction remains constant.
C) change in the quantity of one good that changes the utility received by one unit.
D) same thing as the marginal utility of a good.