In the case of either a positive or negative externality, a good's market price will:
A. not fully reflect a good's social marginal cost or social marginal benefit.
B. be too high.
C. be too low.
D. not equate the quantity supplied by sellers with the quantity demanded by buyers.
Answer: A
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Deficits and surpluses in the balance of payments are eliminated by ____ in a pure flexible exchange rate system
a. the market mechanism b. financial borrowings c. reserve movements d. changes in fiscal and monetary policies
The organization structure where a group performing a specialized task reports to a manager in that same area
a. functional b. line and staff c. product d. matrix
An example of a good that is excludable is:
A. broadcast television. B. an outdoor sculpture visible from the street. C. an aerial fireworks display. D. a television set.
Pollution
A. is absent in a free market economy. B. exists because air and water are privately owned resources. C. is increased when property rights are defined. D. creates a negative externality.