Assuming No Externalities Exist, If a Good's Price Is More

question 107

Multiple Choice

Assuming no externalities exist, if a good's price is more than its marginal cost, then the benefits consumers derive are ________ than the cost of resources needed to produce it and ________ should be produced.

• A) greater; less
• B) greater; more
• C) less; less
• D) less; more

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Definitions:

Environmental Protection Agency

A federal agency of the U.S. government tasked with protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress.

Pollution

is the presence or introduction into the environment of substances or things that have harmful or poisonous effects.

Savings & Loan Scandal

A financial scandal involving the collapse of numerous savings and loan associations in the late 1980s and early 1990s, primarily due to risky business practices and regulatory failures.

White-collar Criminals

Individuals who commit crime related to their occupation, often involving fraud, embezzlement, or corruption, typically without direct physical force.