A good that provides external benefits to society has:
a. too few resources devoted to its production.
b. too many resources devoted to its production.
c. the optimal resources devoted to its production.
d. not provided profits to producers of the good.
a
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A popular video program used to teach economics to primary school children defines opportunity cost as "what you give up to get something." In light of your understanding of opportunity cost, how would you modify this definition?
The circular flow model with government included would show that government
A. produces goods and services and sells them in the product market to generate net taxes. B. obtains revenues in the product market and uses it to cover costs in the resource market. C. controls economic resources and sells them in the resource market. D. provides goods and services to businesses and households and pays for them with net taxes.