Author Question: External benefits cause the market to: a. underallocate resources. b. be more efficient. c. set ... (Read 120 times)

809779

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External benefits cause the market to:
 a. underallocate resources. b. be more efficient.
  c. set excessively high prices. d. have persistent shortages.

Question 2

Why do negative externalities like pollution result in inefficiency?
 a. Because producers artificially restrict their supply.
  b. Because producers ignore the external costs they impose on third-parties.
  c. Because producers manufacture more goods than people can afford to buy.
  d. Because producers will receive an unequal distribution of profits.



AmberC1996

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Answer to Question 1

a

Answer to Question 2

b



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