Which of the Following Can Result in a Market Producing

question 361

Multiple Choice

Which of the following can result in a market producing an inefficient quantity of a good?
i.competition
ii.an external cost or an external benefit
iii.a tax

• A) i only
• B) iii only
• C) ii only
• D) ii and iii
• E) i and iii

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Definitions:

No Relationship

A situation where two variables do not display any association, correlation, or cause-and-effect interaction with each other.

Independent Variable

The variable in an experiment that is manipulated by the researcher to examine its effect on the dependent variable.

Direction of Cause and Effect

Pertains to determining which variable influences the other in a cause-and-effect relationship.

Experimental Methods

Research designs involving the manipulation of variables to determine cause-and-effect relationships.