When all costs and benefits of a transaction are borne by the participants of that transaction:
A) the market outcome will be inefficient.
B) then private costs and social costs are identical.
C) negative externalities exist.
D) positive externalities exist.
E) the private costs are more than the social costs.
Correct Answer:
Verified
Q1: When economic activity imposes costs on others
Q2: Higher the economic freedom in a country:
A)lower
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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