Government Intervention in a Particular Industry Is Unnecessary If Each

question 76

Multiple Choice

Government intervention in a particular industry is unnecessary if each of the industry's firms is operating where

• A)price is equal to private marginal cost.
• B)the demand curve is perfectly elastic.
• C)there are no positive externalities.
• D)marginal social benefit is equal to marginal social cost.
• E)there are no negative externalities.

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Definitions:

Productive

The capability of producing goods and services efficiently and effectively.

Voters

Individuals who are eligible and participate in the process of electing leaders or deciding on public policy issues.

Government Activity

Actions or operations carried out by the government in order to provide public goods and services, regulate the economy, and support societal welfare.

Rent-Seeking Activity

The practice of gaining economic advantage without reciprocating any benefits back to society through wealth creation.