All of the following were classical economists EXCEPT
A) Adam Smith
B) A. C. Pigou
C) David Ricardo
D) John Maynard Keynes.
Question 2
When a good causes positive external benefits to accrue to third parties, an unfettered market will
A) under-allocate resources to the good causing the benefit.
B) over-allocate resources to the good causing the benefit.
C) cause the equilibrium quantity, established before the benefit is taken into account, to be produced more efficiently.
D) eliminate such goods.
