When _____ Are ______,It Will Be Difficult to Reach a Private

question 1

Multiple Choice

When _____ are ______,it will be difficult to reach a private solution.

• A)transactions costs;high
• B)transactions costs;low
• C)externalities;visible
• D)externalities,invisible

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Definitions:

The Soviet Union

A previously existing federal socialist nation in northern Eurasia, officially recognized as the Union of Soviet Socialist Republics (USSR) from 1922 to 1991.

Centrally Planned Economic System

An economic system in which the government or state makes all decisions about what to produce, how to produce, and for whom to produce, with little or no input from market forces.

Consumers

Individuals or groups who purchase goods and services for personal use and not for manufacture or resale.

Privately Owned Businesses

Companies that are owned by individuals or private groups, not controlled by the government.