Free Markets Produce Too Little Output When

question 58

Multiple Choice

Free markets produce too little output when

• A)negative externalities exist
• B)positive externalities exist
• C)production uses fixed-production technology
• D)production uses variable technology
• E)the resource is exhaustible

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Definitions:

Natural Resources

Raw materials and resources naturally occurring in the environment, such as minerals, forests, and water.

National Laws

The legal regulations and statutes that are enacted and enforced by a country's government.

International Law

A body of rules and principles that govern the relations and dealings between nations.

Commercial Activity

Any type of business operation or venture that involves the exchange of goods or services with the intention of generating profit.