When negative externalities exist, the private market equilibrium represents a
A) market price which is too low and a market quantity which is too low.
B) market price which is too low and a market quantity which is too high.
C) market price which is too high and a market quantity which is too low.
D) market price which is too high and a market quantity which is too high.
B
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A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative
Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.
All of the following groups benefited from immigration to the U.S. in the late 19th and early 20th century except
a. manufacturing and mining companies. b. retailers. c. railroad companies. d. unskilled native workers.
The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.
a. natural rate of unemployment b. business cycle c. supply curve d. labor supply
The wealth effect helps explain the slope of the aggregate-demand curve. This effect is
a. relatively important in the United States because expenditures on consumer durables is very responsive to changes in wealth. b. relatively important in the United States because consumption spending is a large part of GDP. c. relatively unimportant in the United States because money holdings are a small part of consumer wealth. d. relatively unimportant because it takes a large change in wealth to cause a significant change in interest rates.