Use the Following to Answer Questions

question 69

Multiple Choice

Use the following to answer questions :
Figure: City with Two Polluters
-Which example illustrates a policy solution to inefficiency in the free market caused by the stated externality?

• A) The city government imposes rent control.The externality is that housing's quantity demanded exceeds the quantity supplied at the current price.
• B) The provincial government imposes a minimum wage.The externality is that firms pay too little to their workers.
• C) The government offers free childhood immunizations.The externality is that an immunized child cannot transmit disease to others.
• D) The federal government provides national defence.The externality is that people can't be excluded from national defence,even if they don't pay for it.

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Definitions:

Energy

The capacity to do work, manifested in various forms such as heat, light, motion, electrical, chemical, and potential energies.

Product's Maintainability

The ease with which a product can be maintained in order to correct defects or to conduct preventive maintenance.

Manufacturability

The ease with which products can be designed for efficient mass production.

Product Development Teams

Teams charged with moving from market requirements for a product to achieving product success.