If people took external benefits, suchas cleaner air, into consideration when deciding how much to consume of goods that cause externalities:they would consume less.they would act in a way that is optimal from a societal perspective.the markets for these goods would generate greater surplus.
A) I and III only
B) I and II only
C) II and III only
D) I, II, and III
Correct Answer:
Verified
Q2: Any cost that is imposed without compensation
Q3: External benefits accrue:
A)directly to the decision maker
Q4: Benefits that accrue directly to the decision
Q5: Costs that fall directly on an economic
Q6: External costs:
A)fall directly on an economic decision
Q7: A benefit that accrues without compensation to
Q8: Markets fail to maximize total surplus when:
A)individual
Q9: If people took external costs, such as
Q10: All externalities:
A)are harmful to society and create
Q11: External costs and external benefits are collectively
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