Which of the Following Is True

question 217

Multiple Choice

Which of the following is true?
i.In an unregulated market with an external benefit,consumers don't take it into account and consume less than the efficient quantity.
ii.Marginal social cost equals marginal private cost minus marginal external cost.
iii.An unregulated market produces more than the efficient quantity of a good with an external cost.

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

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Definitions:

High Income

Refers to individuals or households that earn a significantly higher amount of money compared to the average income levels within a specific geographic region or within a particular demographic.

Economic Theory

The study of how goods, services, and wealth are produced, distributed, and consumed in society.

Demand

The desire for certain goods or services backed by the ability and willingness to pay for them.

Luxury Goods

High-end items that are not necessary for survival but are desired for their quality, status, or aesthetics.