The Similarity Between Markets for Common Resources and Markets with Externalities

question 43

Multiple Choice

The similarity between markets for common resources and markets with externalities is that:

• A) the equilibrium quantity is too high in terms of society.
• B) the price that competitive firms charge does not capture the true costs and benefits of consumption.
• C) government involvement is needed to reach an efficient outcome.
• D) generally we get an oversupply at market.

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Definitions:

Query Line

The graphical representation or command line in a query design interface that shows the relationship or criteria being set between different fields or tables.

Action Query

In databases, a query that makes changes to data or database structures, such as updating, deleting, or inserting records.

Run Button

An interface control that, when clicked, executes or starts a program, script, or command.

Change Data

The process of altering data elements in a database, file, or software application.