Without Government Intervention, Society Is Likely to Get Too Much

question 114

Multiple Choice

Without government intervention, society is likely to get too much production of:
I.private goods that generate external costs
II.private goods that generate external benefits
IiI.public goods
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• A)​(i) only
• B)​(ii) only
• C)​(iii) only
• D)​both (ii) and (iii)

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Definitions:

Pure Competition

A market structure characterized by a large number of small firms, identical products, and no barriers to entry or exit, allowing for perfect knowledge and resource mobility.

Pure Monopoly

A market structure where a single seller dominates the market with no close substitutes for the product or service offered.

Oligopoly

A market structure characterized by a few firms dominating the market.

Mutual Interdependence

A situation in an economy where the actions of one participant significantly affect the outcomes of other participants, commonly seen in oligopolistic markets.