Consider the Production of a Private Good,such as a Car,and

question 159

Multiple Choice

Consider the production of a private good,such as a car,and a common-resource good,such as fish.What do the markets for these two goods have in common?

• A) The quantity of output produced is inefficiently low.
• B) The quantity of output produced is inefficiently high.
• C) Both create a positive externality.
• D) Both markets are likely to arrive at the social optimum without government intervention.
• E) The price of both goods is inefficiently high.

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Definitions:

Board Of Directors

A group of individuals elected to represent shareholders and oversee the activities and strategic direction of an organization.

Legislative Process

The procedure through which proposed laws are considered and potentially enacted by a legislative body through various stages including drafting, debate, and voting.

Nonprofit Organization

An entity that operates for the benefit of society or a specific group of people and does not distribute its surplus funds to owners or shareholders.

Issue

A topic or problem that is under discussion or over which there are opposing views or disagreements.