When There Are Externalities, Economic Efficiency Can Be Achieved Without

question 128

Multiple Choice

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.

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Definitions:

World Bank

An international financial institution that provides loans and grants to countries for development projects aimed at reducing poverty.

Basic Development Projects

Initiatives aimed at foundational improvements in an economy or society, such as infrastructure, education, and health services.

Developing Nations

Countries with a lower level of material well-being, lower income per capita, and generally striving to achieve higher levels of economic and social development.

Economists

Professionals who study and analyze the production, distribution, and consumption of goods and services.