If There Are No Externalities, a Competitive Market Achieves Economic

question 161

Multiple Choice

If there are no externalities, a competitive market achieves economic efficiency.If there is a negative externality, economic efficiency will not be achieved because

• A)too little of the good will be produced.
• B)too much of the good will be produced.
• C)a deadweight loss will occur that is equal to the area under the demand curve for the good.
• D)economic surplus is maximized.

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Definitions:

Fresh Water

Water that has low concentrations of dissolved salts (salinity) and other total dissolved solids, commonly found in rivers, lakes, streams, and underground aquifers.

Inverted Ecological Pyramids

describe situations in ecosystems where higher trophic levels have greater biomass or numbers than lower levels, contrary to the typical pyramid shape.

Aquatic Ecosystems

Environments in water where organisms interact with each other and with their surrounding physical environment, including oceans, lakes, and rivers.

Nitrification

A microbial process by which ammonia is oxidized to nitrites and then nitrates, a crucial part of the nitrogen cycle in soils.