If there are externalities present in a market, resources are allocated efficiently when marginal social cost equals marginal social benefit
Indicate whether the statement is true or false
TRUE
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Which of the following reduces U.S. potential for economic growth by reducing household incentive to use private property most efficiently and effectively?
(a) Personal income taxes (b) Farm subsidies and import tariffs (c) Auto bailouts (d) Regulation in the health care industry
To compute the present value of a future value, you must know the _________ and the _________.
A. interest rate; compounding interest B. interest rate; time period C. compounding interest; time period D. None of these statements is true.
Given a production possibilities curve, a point:
a. inside the curve represents unemployment. b. on the curve represents full employment. c. outside the curve is currently unattainable. d. all of these.
Classical theory advocates ________ policy and Keynesian theory advocates ________ policy
a. fixed wages; flexible wages b. nonintervention; intervention c. active; nonstabilization d. active; passive