A Characteristic of a Competitive Free Market Is That, If

question 64

Multiple Choice

A characteristic of a competitive free market is that, if external costs exist, they:

• A) enable the market to allocate resources efficiently.
• B) are reflected by the total market supply curve.
• C) are not reflected by the total market supply curve.
• D) are reflected by the total market demand curve.

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Definitions:

Research Question

A specific query that guides a scientific study or research project.

Prejudice

The negative evaluation of a social group, and individuals within that group, based upon conceptions about that social group that are held despite facts that contradict it.

Debriefing

A process whereby a researcher explains the true purpose of a research study to a subject (respondent); usually done after completion of the study.

Experiment

An experiment is a method of research in the sciences or social sciences that involves the manipulation of variables to test a hypothesis and observe the effects.