When positive or negative externalities exists in the production of a good, the market outcome is an inefficient outcome.
Answer the following statement true (T) or false (F)
True
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The higher the nominal interest rate, the
A) greater the opportunity cost of holding money. B) lower the quantity of money demanded. C) more the demand for money curve shifts leftward. D) Both answers A and B are correct.
What are the two principles of fairness that are applied to tax systems?
What will be an ideal response?
Which of the following statements is false?
A. Externalities can sometimes be internalized through individual voluntary agreements. B. It would be a relatively easy matter to establish property rights in the air. C. Persuasion can be used in some cases to internalize externalities. D. Taxes and subsidies are sometimes used as corrective devices for market failures.
The amount the government budget deficit would be if the economy were at full employment is known as the
A) primary deficit. B) full-employment deficit. C) natural deficit. D) current deficit.