If either the production or consumption of a good generates an external cost, then the market equilibrium quantity will be:
A. greater than the socially optimal quantity.
B. socially optimal.
C. equal to zero.
D. less than the socially optimal quantity.
Answer: A
Economics
You might also like to view...
During an economic boom
A) aggregate demand exceeds aggregate supply. B) potential output exceeds quantity demanded. C) actual output exceeds potential output. D) potential output exceeds actual output.
Economics
Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 5 percent, an initial deposit of $10,000 will lead to a total increase in deposits of
A) $500. B) $10,000. C) $50,000. D) $200,000.
Economics