Which of the Following Suggests That the Private Market Can

question 103

Multiple Choice

Which of the following suggests that the private market can be effective in dealing with externalities?

• A)the 'invisible hand'
• B)the law of diminishing social returns
• C)the Coase theorem
• D)technology policy

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Definitions:

Standardized Intelligence Test

A psychometric test designed to measure a person's intellectual capabilities in comparison to the population.

IQ Scores

Quantitative measures of intelligence, typically obtained through standardized tests, reflecting cognitive abilities in relation to a peer group.

Inherently Good

A philosophical and ethical stance suggesting that human beings are born with an innate tendency towards goodness.

Innately Evil

The philosophical and psychological concept suggesting that humans are born with an inherent tendency towards malevolence and wrongdoing.