When a negative externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.
A. external costs are necessarily greater than private costs; government
B. social costs equal private costs; no government
C. social costs are less than private costs; government
D. social costs are greater than private costs; government
E. none of the above
Answer: D
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The tables above show a nation's labor demand and labor supply schedules and its production function. Given the equilibrium in the labor market, potential GDP is
A) $3.0 trillion. B) $3.7 trillion. C) $4.2 trillion. D) $4.5 trillion. E) $2.0 trillion.
A significant problem of a dual exchange rate system is that it
(a) is difficult to administer. (b) leads companies to pursue rent-seeking behavior. (c) promotes black markets. (d) all of the above. (e) none of the above.
In a monopoly,
A) marginal revenue is greater than price. B) marginal revenue is less than price. C) the demand curve is horizontal. D) marginal revenue and price are equal
?A(n) _____________ occurs when an individual or a group of people buy a? company's publicly traded stock mainly by using borrowed funds.
A. merger B. hostile takeover C. joint venture D. leveraged buyout E. acquisition