Which of the following is NOT a problem caused by black markets?
A) Legally banned goods are traded in black markets.
B) Black markets pose a threat to legitimate businesses.
C) Black markets lead to an inefficient use of society's resources.
D) Black markets lead to a fall in the demand for goods.
Question 2
The social cost of producing a good that generates negative externalities is the sum of the ________.
A) average variable cost and average fixed cost of production
B) average total cost and the marginal cost of production
C) private cost and external costs of production
D) total fixed cost and total variable cost of production
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