In a Market, the Presence of an External Cost Causes

question 179

True/False

In a market, the presence of an external cost causes the market equilibrium output to exceed the efficient level of output.

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Definitions:

Bottom of the Pyramid

A socioeconomic concept that refers to the largest, but poorest group of people in the global population, who live on less than $2.50 a day.

Impoverished Populations

Communities that suffer from a lack of resources and economic instability, often leading to poor living conditions.

Goods and Services

The two primary categories of offerings in the economy; goods are tangible items, while services are activities or benefits offered for consumption.

Tariffs

Taxes imposed on imported goods and services, which can affect trade dynamics, pricing, and availability of products in a domestic market.