If People Took Externalities Like Pollution into Consideration,on Balance They

question 54

Multiple Choice

If people took externalities like pollution into consideration,on balance they would consume less of the good causing these externalities.This tells us:

• A)the market equilibrium is not maximizing surplus.
• B)the efficient outcome for society is at a lower quantity.
• C)market discouraging actions,like taxation,can help bring efficiency to markets where externalities are present.
• D)All of these statements are true.

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Definitions:

Common Law

A body of unwritten laws based on legal precedents established by the courts, influencing and guiding judicial decision-making.

Service Contracts

Agreements between customers and service providers outlining the terms for the provision of services.

Rules of Law

The principle that all actions are governed by applicable laws, which are applied equally and fairly to all individuals.

Lease Contracts

Legal agreements where a lessee is given the right to use an asset owned by the lessor for a specified period in exchange for rental payments.