All solutions to market failures in markets for public goods or common resources:
A. try to force the internalization of externalities.
B. are not perfect, and total surplus cannot be maximized in these markets.
C. need to be accepted by the affected parties to be effective.
D. must be provided by the government.
Answer: A
Economics
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When you calculate GDP you need
A. the prices of goods & services B. the amount of goods & services produced C. both the prices and quantities of produced goods & services D. none of the above
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Refer to the figure above. If A forms a customs union with B, the value of trade diversion will be
A) $0. B) $10,000. C) $20,000. D) $40,000.
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