If an Externality Is Present in a Market,what May Enhance

question 178

Multiple Choice

If an externality is present in a market,what may enhance economic efficiency

• A)increased competition
• B)if private individuals do not attempt bargaining on their own to resolve the problems caused by externalities
• C)better informed market participants
• D)government intervention

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Definitions:

Assets Abroad

Financial or physical holdings owned by individuals or entities in countries other than their own.

Current Account Balance

A measure of a country's trade, earnings on foreign investments minus payments to foreign investors, and cash transfers, over a period.

Goods And Services

The combination of tangible products (goods) and intangible activities (services) offered in the marketplace.