Consider Two Goods--One That Generates External Benefits and Another That

question 50

Multiple Choice

Consider two goods--one that generates external benefits and another that generates external costs. A competitive market economy would tend to produce too

• A) much of both goods.
• B) little of both goods.
• C) much of the good that generates external benefits and too little of the good that generates external cost.
• D) little of the good that generates external benefits and too much of the good that generates the external cost.

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Definitions:

Intestate

The condition of dying without having made a legal will, leading to assets being distributed according to state laws.

Durable Power

Refers to a durable power of attorney, a legal document that grants someone the authority to act on another's behalf, even if the grantor becomes incapacitated.

Medical Decisions

The process of making choices related to health care by patients, often involving considerations of various treatment options.

Executed

A term applied to a contract whose terms have all been fully performed.