When the Government Intervenes in Markets with Externalities, It Does

question 306

Multiple Choice

When the government intervenes in markets with externalities, it does so in order to

• A)increase production when negative externalities are present.
• B)protect the interests of bystanders.
• C)make certain all benefits are received by market participants.
• D)reduce production when positive externalities are present.

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Definitions:

Gender Gap

The discrepancy in opportunities, status, attitudes, and pay between men and women.

Political Attitudes

The views and opinions people hold about politics, policy, and the roles of governments and institutions in society.

Transfer

The act of moving or reassigning someone or something from one position, place, or jurisdiction to another.

Social Welfare

Organized efforts and policies aimed at providing assistance and support to individuals and families in need.