If the market price of a good does NOT include all of the costs and benefits that arise from the production or consumption of the good, then
A. an externality is present.
B. resources are properly allocated.
C. society is consuming and producing the optimal amount of the good.
D. the market is perfectly competitive.
Answer: A
Economics
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In the Friedman "Fooling Model" a ________ causes the labor supply curve to shift, and in Figure 17-1 above, if the initial equilibrium is at point C then, the new level of price expectations, POe is ________ than the initial level of Pe
A) change in the money supply; less than B) change in real wages; less than C) change in nominal wages; greater than D) change in price expectations; greater than
Economics
Property owned by individuals is called:
A. Common property B. Shared property C. Public property D. Private property
Economics