If There Are Significant Externalities Present, Then

question 89

Multiple Choice

If there are significant externalities present, then:

• A) prices will still send the correct signal in a free market.
• B) the invisible hand still works perfectly.
• C) there will not be an ideal balance of resources between industries.
• D) creative destruction won't work.

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Definitions:

Confidence Intervals

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter, with a certain level of confidence.

Normal Populations

Refers to groups whose underlying distribution follows a normal (Gaussian) distribution, characterized by a symmetric bell-shaped curve.

Confidence Interval

A set of values, taken from data samples, which is predicted to include the value of an unspecified population attribute.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability within a data set, indicating how much individual data points deviate from the mean.