If There Are No Externalities, a Competitive Market Achieves Economic

question 89

Multiple Choice

If there are no externalities, a competitive market achieves economic efficiency.If there is a negative externality, economic efficiency will not be achieved because

• A)too little of the good will be produced.
• B)too much of the good will be produced.
• C)a deadweight loss will occur that is equal to the area under the demand curve for the good.
• D)economic surplus is maximised.

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Definitions:

Outgroup

A group with which an individual does not identify or feel a sense of belonging, often viewed with prejudice or hostility.

Polygamy

The practice or condition of having more than one spouse at the same time.

Heterosexual Women

Women who are emotionally, romantically, or sexually attracted to individuals of the opposite sex.

Social Reforms

Actions and policies intended to rectify social issues and promote improvement in society.