When a Market Is Corrected for Externalities,it

question 93

Multiple Choice

When a market is corrected for externalities,it:

• A) is efficient and maximizes surplus.
• B) is equitable and makes everyone better off.
• C) needs government regulation to maintain.
• D) All of these statements are true.

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Definitions:

Agoraphobia

A type of anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help would not be available in the event of a panic attack or panic-like symptoms.

Marketplace

An economic term describing a space or system where goods and services are exchanged between buyers and sellers.

Closed Places

Refers to confined or restricted spatial areas that may induce feelings of entrapment or claustrophobia.

Blood-Injection-Injury Type Phobias

Extreme fears of seeing blood or an injury or of receiving an injection or another invasive medical procedure, which cause a drop in heart rate and blood pressure and fainting.