If an Externality Is Present in a Market, Economic Efficiency

question 129

Multiple Choice

If an externality is present in a market, economic efficiency may be enhanced by

• A)increased competition.
• B)weakening property rights.
• C)better informed market participants.
• D)government intervention.

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Definitions:

Clavicle

A slender, curved long bone that connects the sternum and the scapula; also called the collar bone.

Scapula

Also known as the shoulder blade, it is a large, flat triangular bone located in the upper back, connecting the humerus (upper arm bone) with the clavicle (collarbone).

Humerus

The long bone in the upper arm, extending from the shoulder to the elbow.

Hyoid Bone

A horseshoe-shaped bone in the neck that supports the tongue and is involved in swallowing.