Asked by Mohamed Abushamma on Jun 15, 2024
Verified
When there are externalities, economic efficiency can be achieved without government intervention:
A) at no time.
B) when the externality affects many people and property rights are not well defined.
C) when the externality affects many people and property rights are well defined.
D) when the externality affects only a few parties and property rights are not well defined.
E) when the externality affects only a few parties and property rights are well defined.
Externalities
Financial outcomes that impact third parties who are not directly involved, which can manifest as either advantageous or detrimental.
Economic Efficiency
Maximization of aggregate consumer and producer surplus.
Government Intervention
Actions undertaken by a government to influence or directly manage the economy, which can include regulations, subsidies, tariffs, and public services.
- Recognize the role of government intervention in controlling externalities and promoting environmental protection.
Verified Answer
Learning Objectives
- Recognize the role of government intervention in controlling externalities and promoting environmental protection.
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