Liberals Generally Claim

question 5

Multiple Choice

Liberals generally claim

• A) external diseconomies result from excessive government controls.
• B) an external benefit does not reflect a market failure while an external cost does.
• C) the EPA should be abolished.
• D) the market economy provides few incentives to make investments that produce external benefits or lower costs.

---

Definitions:

Necessaries

Essential items required for living, such as food, shelter, and clothing, which a person cannot legally be deprived of.

Necessary

In legal and ethical contexts, necessary refers to something that is required or indispensable to achieve a specific outcome or obligation.

Disaffirm

The legal act of renouncing or rejecting a contract or agreement, especially by a party who was not legally competent to enter it at the time of agreement.

Reasonable Value

The fair or market value of goods or services, as determined by considering the costs, demand, and any other factor relevant to an exchange.