Knowing that the presence of externalities reduces surplus, it implies that:
A. there are mutually beneficial trades waiting to be exploited so private parties have an incentive to solve the externality problem themselves.
B. government needs to find them and correct the market.
C. there are mutually beneficial trades waiting to be exploited, so government has an incentive to force those parties to solve the problem themselves.
D. None of these statements is true.
A. there are mutually beneficial trades waiting to be exploited so private parties have an incentive to solve the externality problem themselves.
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Consider the following two statements to answer this question:
(1) The bubble policy allows a facility to measure its emissions as an average of all emission points from that facility. (2) Netting was developed as a trading program to control emissions in PSD areas. a. (1) is true and (2) is false c. (1) is false and (2) is true b. both (1) and (2) are false d. both (1) and (2) are true
Measured as a share of the labor force, union membership was at its highest level in the United States during the
a. 1930s b. 1950s c. 1970s d. 1990s
Which of the following demonstrates the law of supply?
a. When the price of leather belts rose, leather belt sellers increase their quantity supplied of leather belts. b. When car production technology improved, car producers increased their supply of cars. c. When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. d. When ketchup prices rose, ketchup sellers decreased their quantity supplied of ketchup.
Other things the same, if the money supply rises by 2% and people were expecting it to rise by 5%, then some firms have
a. higher than desired prices, which increases their sales. b. higher than desired prices, which depresses their sales. c. lower than desired prices, which increases their sales. d. lower than desired prices, which depresses their sales.