In Order to Achieve a Socially Optimal Level of Output,activities

question 83

Multiple Choice

In order to achieve a socially optimal level of output,activities that generate negative externalities should be:

• A)banned.
• B)subsidized.
• C)taxed.
• D)bought out by the government.

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Definitions:

World Demand

The total demand for goods and services from all countries around the globe.

World Supply

The total amount of a particular good or service that is available to consumers globally.

World Price

The global market price of a commodity, determined by supply and demand factors across all participating countries.

Market Equilibrium

A situation in economics where the quantity of goods supplied is equal to the quantity of goods demanded at a specific price.