According to Milton Friedman
A) voluntary exchange is possible under all market conditions.
B) "neighborhood effects" may justify intervening in the market.
C) direct controls are the best antipollution tactic.
D) there is no pollution problem.

Question

Quizplus · Accepted Answer

Friedman acknowledged the existence of "neighborhood effects" or externalities, such as pollution, where he believed government intervention might be justified to correct market failures.