Externalities prevent the market mechanism from achieving the optimal rate of pollution.
Answer the following statement true (T) or false (F)
True
When external costs are present, the price signal confronting producers is flawed because it does not convey the full (social) cost of scarce resources; therefore the market encourages excessive pollution.
Economics
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In 1973, mainstream sources predicted that the world would run out of oil in
A) 20 years. B) 40 years. C) 100 years. D) Mainstream sources in 1973 predicted the world would never run out of oil.
Economics
Criteria for an optimum currency area include all the following except
A. extensive trade with each other. B. a common language. C. similar business cycle patterns. D. fiscal transfers.
Economics