• 2022-06-06
    When externalities are present in a market, the well-being of market participants
  • is directly affected, and market bystanders are indirectly affected.

    内容

    • 0

      In a market characterized by externalities, the market equilibrium fails to maximize the total benefit to society as a whole.

    • 1

      In a market economy, the economic well-being of society is the responsibility of .

    • 2

      Taxes are costly to market participants because they: () A: transfer<br/>resources from market participants to the government. B: alter<br/>incentives. C: distort<br/>market outcomes. D: All<br/>of the above are correct.

    • 3

      Market failure in the form of externalities arises when ( ) A: production costs are included in the prices of goods. B: not all costs and benefits are included in the prices of goods. C: the benefits exceed the costs of consuming goods. D: the market fails to achieve equilibrium.

    • 4

      Negative<br/>externalities cause loss of welfare not transmitted by market<br/>factors.