If External Costs Exist,the Competitive Free Market

question 146

Multiple Choice

If external costs exist,the competitive free market:

• A)allocates resources inefficiently.
• B)allocates resources efficiently.
• C)automatically corrects an overallocation of resources.
• D)automatically corrects an underallocation of resources.

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Definitions:

Breached The Contract

Occurs when one party fails to fulfill their obligations under a contract.

Suspended

Temporarily halted or made inactive for a period of time.

Medical Clinic

A healthcare facility that provides outpatient services, offering medical treatment and advice to patients.

Operation Of Law

Processes or rights that are automatically applied by virtue of legal authority, without the need for action by any party.