Externalities Can Be Corrected by Each of the Following Except

question 100

Multiple Choice

Externalities can be corrected by each of the following except

• A)self-interest.
• B)moral codes and social sanctions.
• C)charity.
• D)normal market adjustments.

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Definitions:

Utility Functions

Mathematical representations describing the level of satisfaction or utility that a consumer derives from consuming a good or combination of goods.

Equilibrium

A state of balance in a market, where demand equals supply, and economic forces are at rest.

Welfare Economics

Normative evaluation of markets and economic policy.

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and quantities.