A Competitive,unregulated Market Would

question 113

Multiple Choice

A competitive,unregulated market would

• A) produce too much pollution because pollution is an external cost.
• B) produce too little education because education has an external benefit.
• C) fail to achieve equilibrium if there are externalities present.
• D) Both answers A and B are correct.
• E) Both answers B and C are correct.

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Definitions:

Government Corporation

A legal entity created by a government to undertake commercial activities on its behalf.

Federal Bureaucrats

Government officials and employees working within the agencies of the federal government, often non-elected positions responsible for implementing policies.

Clean Air Act

The Clean Air Act is a comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to protect public health and the environment.

Bureau-Level Agency

A specific tier within a federal department focused on a particular area of administration or regulation.