If External Costs Exist,the Competitive Free Market

question 146

Multiple Choice

If external costs exist,the competitive free market:

• A)allocates resources inefficiently.
• B)allocates resources efficiently.
• C)automatically corrects an overallocation of resources.
• D)automatically corrects an underallocation of resources.

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Definitions:

Identical Twins

Twins who originate from the same fertilized egg, sharing 100% of their genes, and typically having very similar physical appearances.

Intellectual Development

The growth and change in intellectual capabilities such as learning, problem-solving, and decision-making over a person's lifetime.

Genetics

The branch of biology that deals with heredity and the variation of inherited characteristics among similar or related organisms.

Heredity

The transfer of physical or mental characteristics genetically from one generation to another.