ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following statements is true about externalities?
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When externalities exist, resources are allocated efficiently
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When positive externalities exist, efficiency is improved by taxing the product
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From society’s point of view, the output of goods for which a positive externality exists is too low
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The price system overproduces goods with positive externalities
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Explanation:
There is 1 question to complete.