Unregulated competitive markets for services with negative externalities, such as gambling, tend to
A. produce too little of the service to satisfy the confirmed addict.
B. produce too much of the service to be efficient.
C. produce the efficient quantity of the service.
D. produce too little of the service to be efficient.
Answer: B
Economics
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For a major country with extensive capital flows, what is the effect of an increase in interest rates?
a. a currency depreciation and increased net exports b. a currency depreciation and reduced net exports c. a currency appreciation and increased net exports d. a currency appreciation and reduced net exports
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