Due to the Externalities Associated with Public Goods and Common

question 27

Multiple Choice

Due to the externalities associated with public goods and common resources:

• A)private markets will lead to an efficient allocation of resources
• B)government intervention can potentially raise economic wellbeing
• C)private markets will correct for the gain or loss to consumer surplus
• D)all of the above are true

---

Definitions:

Sarcasm

Employing irony to ridicule or express disdain.

Functional Fixedness

A cognitive bias that limits an individual to using an object only in the way it is traditionally used, hindering problem-solving.

Heating Vent

An opening designed to allow the passage of warm air from a heating system into a room or building.

Criterion-related Validity

The extent to which a measure is related to an outcome. Criterion-related validity is used to predict future or current performance - it correlates test results with another criterion of interest.