When There Is an Externality in a Market

question 214

Multiple Choice

When there is an externality in a market,

• A)the externality will move the market to an economically efficient equilibrium.
• B)the externality will cause the market price to be less than or greater than the equilibrium price.
• C)the government should use price controls to enable the market to reach equilibrium.
• D)government intervention may increase economic efficiency.

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Definitions:

Source Address

In networking, the address from which data is sent, typically identifying the sender.

Transmission Controller

One of two ECUs used to control an early generation Eaton AMT. The unit had some limited processing capability but was mainly responsible for managing the switching requirements of the system.

J1939 Bus

A communication protocol based on CAN (Controller Area Network) used for networking and communication among vehicle components, particularly in heavy-duty vehicles.

DLCs

Stands for Downloadable Content, additional content created for an already released video game, distributed through the internet.