Government intervention to reduce the level of pollution is prompted by the existence of
a. government failure
b. Externalities
c. an inequitable distribution of income
d. a monopoly
Ans: b. Externalities
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In a perfectly competitive market, an individual ________ has ________ influence over the market price of the good or service being sold
A) buyer; basically no B) seller; basically no C) buyer; a great deal of D) seller; a great deal of E) Both A and B are correct.
Which statement is true?
A. The largest merger in history involved Chase Manhattan Bank. B. There have been only two mergers in our entire history valued at over $15 billion. C. It is illegal under our antitrust laws for two firms in the same industry to merge. D. None of these statements are true.
Which of the following is an accurate statement about the aggregate supply curve?
A. The consensus view is that it begins as horizontal, then starts to slope upward to the right as the economy approaches full employment, and eventually becomes vertical beyond full employment. B. Keynesians view it as vertical up until full employment, at which point it becomes horizontal. C. Monetarists view it as horizontal. D. The Keynesian view is that it is vertical.
The situation where one person's demand for a good depends on the consumption of the good by others is called a
A) network externality. B) network internality. C) consumption externality. D) production externality.