If an Externality Is Present in a Market, Economic Efficiency

question 6

Multiple Choice

If an externality is present in a market, economic efficiency may be enhanced by

• A)government intervention.
• B)a decrease in foreign competition.
• C)fewer market participants.
• D)weaker property rights.

---

Definitions:

Deposits

Money placed into a bank account or with a financial institution for safekeeping or to earn interest.

Investment

The distribution of financial resources in anticipation of earning revenue or gains.

RRSP

Registered Retirement Savings Plan, a Canadian investment account for holding savings and investment assets, aimed at providing retirement income.

Contributions

Money, time, or resources given to support a cause, organization, or project.