When There Are Market Externalities, the Market Allocation of Resources

question 84

True/False

When there are market externalities, the market allocation of resources will be optimal.

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Definitions:

Buying Stocks

The act of purchasing shares in a company with the expectation of earning a return on investment through dividends or stock price appreciation.

Cash Flow

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business.

Direct Method

A cash flow statement preparation approach that involves reporting major classes of gross cash receipts and payments.

Accounts Receivable

Outstanding payments from customers to a company for products or services already rendered.