Which of the following statements is not correct?
a. Private markets tend to over-produce products with negative externalities.
b. Private markets tend to under-produce products with positive externalities.
c. Private parties can bargain to efficient outcomes even in the presence of externalities.
d. Private parties are usually more successful in achieving efficient outcomes than government policies in the presence of externalities.
d
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Market income is defined as wages, interest, rent, and profit earned in factor markets plus cash payments to households by the government
Indicate whether the statement is true or false
Which of the following are short-term financial instruments?
A) a repurchase agreement B) a share of Walt Disney Corporation stock C) a Treasury note with a maturity of four years D) a residential mortgage
Colonial production of tobacco satisfied England's mercantilist interests because:
a. it provided a substitute for imported Spanish tobacco. b. its poor quality discouraged English youth from smoking. c. it provided a good that could be taxed by the English. d. it ensured that the colonists would remain dependent on England for food.
Government subsidized scholarships are an example of a government policy aimed at correcting negative externalities associated with education
a. True b. False Indicate whether the statement is true or false