Which of the Following Can Prevent Markets from Reaching Efficiency

question 1

Multiple Choice

Which of the following can prevent markets from reaching efficiency?
I. Decreasing marginal benefit
II. Taxes
III. Quantity regulations that limit the quantity that may be produced

• A) I and II
• B) I and III
• C) II and III
• D) I, II and III

---

Definitions:

State-Level

Pertaining to the individual states within a federation, as opposed to the national or federal government, focusing on policies and governance at the state level.

Dual Federalism

A political arrangement in which power is divided between the federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government.

Domestic Policies

Government strategies and decisions primarily concerned with activities within a country's borders, such as social welfare, education, and healthcare.

Commerce Clause

A provision in the U.S. Constitution granting Congress the power to regulate trade between states, foreign nations, and Indian tribes.