Knowing That the Presence of Externalities Reduces Surplus,it Implies That

question 54

Multiple Choice

Knowing that the presence of externalities reduces surplus,it implies that:

• A) there are mutually beneficial trades waiting to be exploited so private parties have an incentive to solve the externality problem themselves.
• B) government needs to find them and correct the market.
• C) there are mutually beneficial trades waiting to be exploited, so government has an incentive to force those parties to solve the problem themselves.
• D) None of these statements is true.

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Definitions:

Phase Rotation Meter

A meter used to determine the rotation of a motor.

Machinery

Mechanical devices or assemblies, which perform specific functions in industrial, agricultural, or domestic settings.

Motor

A machine, especially one powered by electricity or internal combustion, that provides motive power for a vehicle or for some other device with moving parts.

Wound-Rotor Induction Motor

A type of induction motor where the rotor has windings connected to slip rings, enabling variable resistance to be inserted in the rotor circuit for speed control.