When producing a good generates negative externalities, the private market for that good tends to produce too:
A. little of the product at too low a price.
B. little of the product at too high a price.
C. much of the product at too low a price.
D. much of the product at too high a price.
Answer: C
Economics
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Assume that the M1 multiplier is 3.0 and the monetary base is $200 billion. If M1 is currently equal to $600 billion and the Federal Reserve wishes to raise the level to $690 billion, the monetary base should be expanded by
A) $60 billion. B) $30 billion. C) $20 billion. D) $10 billion.
Economics
Those who simultaneously buy and sell currency to take advantage of exchange rate differences are called
a. speculators b. hedgers c. entrepreneurs d. arbitrageurs e. underwriters
Economics