When there is an externality in a market A) government ...

[fbq8i]

When there is an externality in a market
 
  A) government intervention may increase economic efficiency.
  B) the government should use price controls to enable the market to reach equilibrium.
  C) the externality will move the market to an economically efficient equilibrium.
  D) the externality will cause the market price to be less than or greater than the equilibrium price.

Question 2

All economic questions arise from the fact that resources are scarce.
 
  Indicate whether the statement is true or false

[macagn]

Answer to Question 1

A

Answer to Question 2

TRUE