When there is an externality in a market
A) the externality will move the market to an economically efficient equilibrium.
B) the externality will cause the market price to be less than or greater than the equilibrium price.
C) the government should use price controls to enable the market to reach equilibrium.
D) government intervention may increase economic efficiency.
Answer: D
You might also like to view...
The following are impediments to economic growth EXCEPT
A) dead capital. B) increased education. C) lack of economic freedom. D) bureaucratic inefficiency.
According to Keynes, the most important determinant of the level of investment was the ______________.
Fill in the blank(s) with the appropriate word(s).
The first antitrust act in the U.S. was the
A. Federal Trade Commission Act. B. Clayton Act. C. Cartels Legislation Act. D. Sherman Act.
Which of the following is not a determinant of demand for laptop computers?
A. Income of buyers of laptop computers B. The cost of inputs for producing laptop computers C. The prices of related goods such as software and iPads D. Expectations about the future price of laptop computers