Compared with the Efficient Outcome, the Market Price of a Good

question 162

Multiple Choice

Compared with the efficient outcome, the market price of a good that generates external benefits is:

• A) too low.
• B) too high.
• C) equal to the efficient price.
• D) better than the efficient price.

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Definitions:

Valence Electrons

The electrons in the outermost shell of an atom, which determine the atom's chemical properties and its ability to form bonds.

Hydrogen Bonds

Weak bonds between a hydrogen atom in one molecule and an electronegative atom (often oxygen or nitrogen) in another, important in the structure of water and DNA.

Carbon Atom

The fundamental chemical element with symbol C, essential to all known life forms and the basis of organic chemistry.

Carboxyl Group

A weakly acidic functional group; abbreviated —COOH.