When External Costs Are Present

question 255

Multiple Choice

When external costs are present

• A) competitive, unregulated markets are efficient.
• B) transaction costs will be high.
• C) a tax might be able to create efficiency.
• D) property rights have already been established.

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Definitions:

Large City

A highly populated urban area with a significant economic, political, and cultural influence both regionally and nationally.

Acid Deposition

A broad term that includes any form of precipitation with acidic components, such as sulfuric or nitric acid, falling to the ground.

Highest Levels

The most extreme or advanced point within a specific context or system.

Photochemical Smog

Air pollution created by the reaction of sunlight with pollutants such as nitrogen oxides and volatile organic compounds in the Earth's atmosphere.