Free market economies underproduce goods with positive externalities because
A) there are no benefits to the production of these goods.
B) the additional social benefits are not taken into account by the marketplace.
C) the additional social benefits cannot be measured.
D) the additional social benefits are too small to matter.
B
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Who tends to receive the benefits from a public good that increases the desirability of living in a certain area?
a. Government. b. Residents. c. Landlords. d. No one.
The form of economic organization in which individuals may own private property but in which the government owns and operates productive resources is called
A) communism. B) capitalism. C) socialism. D) utilitarianism.
The cost borne by a producer in the production of a good or service is called
A) internal cost. B) social cost. C) public cost. D) private cost.
Refer to Scenario 1. Is the slope coefficient statistically different from zero?
A) No. B) Yes. C) Inconclusive. D) None of the above.