All Remedies That Attempt to Solve an Externality Problem Share

question 174

True/False

All remedies that attempt to solve an externality problem share the goal of moving the allocation of resources closer to the private optimum.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity thereof that producers are willing to supply.

Alternative Good

A product or service that consumers may choose as a substitute for another good or service.

Quantity Supplied

The amount offered for sale per period at a particular price, as reflected by a point on a given supply curve.

Resource Prices

Prices of inputs used in the production of goods and services, including raw materials, labor, and capital.