Which of the Following Can Result in a Market Producing

question 361

Multiple Choice

Which of the following can result in a market producing an inefficient quantity of a good?
i.competition
ii.an external cost or an external benefit
iii.a tax

• A) i only
• B) iii only
• C) ii only
• D) ii and iii
• E) i and iii

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Definitions:

Incubator

A device used to maintain optimal environmental conditions for the growth and development of premature babies, or for cultivating microbiological cultures.

Protective Container

An object designed to shield its contents from damage, contamination, or exposure to external harmful elements.

Creche

A nursery where babies and young children are cared for during the working day.

Sudden Infant Death Syndrome

is the unexplained death, usually during sleep, of a seemingly healthy baby less than a year old.