When Externalities Are Present, Reaching an Efficient Outcome Is Especially

question 157

True/False

When externalities are present, reaching an efficient outcome is especially difficult when the number of interested parties is large.

---

Definitions:

Output Per Worker

The average quantity of goods and services produced per employee in a given time period.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP growth.

Simon Kuznets

A Ukrainian-American economist who made significant contributions to the study of economic growth, the development of the concept of Gross National Product, and the statistical analysis of economic cycles.

Automobile Industry

A sector of the economy that deals with the design, production, and selling of motor vehicles.