The Market Equilibrium Is Not Efficient When the Consumption of a Good

question 68

Multiple Choice

The market equilibrium is not efficient when the consumption of a good creates external costs, which cause social costs to be:

• A) less than the private cost.
• B) greater than the private cost.
• C) less than the total cost.
• D) greater than the total cost.

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Definitions:

Ethylpropylamine

A chemical compound which is an amine derivative from ethyl and propyl groups.

Compound

A compound created by the chemical combination of two or more elements bonded together.

Boiling Point

The boiling point is the temperature at which a liquid turns into a vapor at a given pressure, characteristic for each substance.

Pure Solvent

A liquid substance that is able to dissolve other substances (solute), without any impurities or admixtures.