When economic activity imposes costs on others not directly involved in the transaction:
A) a negative externality exists.
B) a positive externality exists.
C) then the market,will produce too little of the good.
D) the tragedy of commons problem arises.
E) a free rider problem arises.
Correct Answer:
Verified
Q2: Higher the economic freedom in a country:
A)lower
Q3: When all costs and benefits of a
Q4: Which of the following is true of
Q5: When the benefits of an activity are
Q6: The free-rider problem occurs because:
A)it is easy
Q8: Which of the following statements is true?
A)In
Q11: In the case of public goods:
A)the free
Q12: The table below shows the payoff (profit)
Q13: The table below shows the payoff (profit)
Q15: The table below shows the payoff (profit)
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