What is the likely consequence of a negative externality if the free market is allowed to operate?
A) An efficient allocation of resources
B) Production of more than the socially efficient quantity of the good
C) Production of less than the socially efficient quantity of the good
D) Establishment of a market price that is greater than the socially efficient price
E) None of these
Correct Answer:
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A) demand is
Q82: An externality exists when
A) the benefits from
Q83: Which of the following is most likely
Q84: Externalities are
A) either costs or benefits imposed
Q85: When the production of a good creates
Q87: Which of the following is an example
Q88: If the production of a product results
Q89: A negative externality related to a product
A)
Q90: An example of a negative externality is
A)
Q91: Costs to society will equal costs to
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