Free market economies
a. often have dirty air and rivers.
b. acting on their own do not do enough to efficiently deal with externality problems.
c. while not protecting the environment automatically do offer a powerful tool that may be used for that purpose.
d. All of the above are correct.
d
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According to the economic way of thinking,
A) the private sector is more important than the public sector. B) the public sector is more important than the private sector. C) the public sector cannot be adequately studied using economic theory. D) people in society strive to advance the projects they are interested in, and they will advance their interests through market institutions or the institutions of government.
Exhibit 2-6 Production possibilities curve data A B C D E F Capital goods150 140 120 90 50 0 Consumer goods 0 20 40 60 80 100 In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150. B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced. C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. D. the amount of consumer goods produced must be greater than zero.
DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service. For a total price of $90, DeShawn will also detail the car's engine, a
service that adds an additional $20 to the total cost of the package. What is DeShawn's marginal benefit if he sells a basic detailing package? A) $35 B) $75 C) He makes a marginal loss of $15, not a marginal benefit. D) The marginal benefit cannot be determined.
Fixed costs of entry create an advantage for potential entrants since incumbents have already made these expenditures while potential entrants can avoid these costs
Indicate whether the statement is true or false