Markets tend to underallocate resources to the production of a good when
A) there are negative externalities.
B) there are positive externalities.
C) there are public goods produced.
D) equilibrium occurs.
Answer: B
Economics
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A person's average tax rate equals her
a. tax obligation divided by her marginal tax rate. b. increase in taxes if her income were to rise by $1. c. tax obligation divided by her income. d. increase in taxes if her marginal tax rate were to rise 1percent.
Economics
Suppose the government imposes a tax of 20 percent on the first $50,000 of income and 30 percent on all income above $50,000 . What is the average tax rate when income is $60,000?
a. 21.7 percent b. 25.0 percent c. 46.7 percent d. 50.0 percent
Economics