In Any Case Where There Is a Positive Externality, Forming

question 253

True/False

In any case where there is a positive externality, forming a government agency to solve the problem rarely results in an efficient outcome.

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Definitions:

Competition

The rivalry among businesses to attract customers, which can lead to improved quality, lower prices, and innovation.

Social Interest

The welfare or well-being of the general public and society at large, considering the collective needs rather than individual interests.

No Personal Financial Responsibility

A situation where individuals do not bear direct financial consequences for their actions, often due to insurance, subsidies, or other protective measures.

Corporations

Legal entities that are separate from their owners, providing limited liability protection, and have the ability to raise capital through selling shares.