A Commonality Between Externalities and Public Goods Is That

question 8

Multiple Choice

A commonality between externalities and public goods is that:

• A)in each case, markets are not likely to allocate resources efficiently, even though they might otherwise be competitive.
• B)in each case, government agency intervention would create inefficiency compared to the market solution.
• C)competitive markets are likely to be efficient in each case.
• D)the invisible hand (as discussed by Adam Smith)is likely to lead to efficiency in each case.

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Definitions:

Capitalist Structures

Economic and social systems characterized by private ownership of the means of production, profit motive, and market competition.

Social Structures

The organized patterns of social relationships and social institutions that together compose society.

Feminist Question

The inquiry into the ways in which gender and power are structured and intertwined within societies, often challenging existing inequalities.

Social World

The totality of relationships, institutions, culture, and communal interactions that shape collective human life and individual experiences within society.