Author Question: If a new shopping center forces a local government to invest in new water and sewer improvements, ... (Read 75 times)

viki · **on:** Jul 9, 2018

If a new shopping center forces a local government to invest in new water and sewer improvements, street widening, and environmental initiatives, those added costs are called:

A. externalities.
B. social goods.
C. merit goods.
D. none of the above

Question 2

Externalities are a sign of:

A. the effectiveness of the free market economy.
B. failure in the free market economy.
C. the effectiveness of socialism.
D. failure in socialist economies.