If Production of a Good Creates Negative Externalities,then the Market

question 5

Multiple Choice

If production of a good creates negative externalities,then the market

• A)will under produce it
• B)will over produce it
• C)must be perfectly competitive
• D)must be constrained by barriers to entry
• E)will produce the most efficient quantity

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Definitions:

Exchange of Resources

refers to the act of giving and receiving goods, services, or any value between individuals or entities, leading to mutual benefit.

Polish Jews

A historical and cultural group of Jews who have lived in the territory of contemporary Poland for centuries.

World War II

A global conflict that took place between 1939 and 1945, involving most of the world's nations and marked by significant events, battles, and shifts in power.

Survived

To remain alive or in existence after going through a dangerous or potentially lethal situation.