SCENARIO: Developers of a new housing scheme spend money putting in roads, lighting and clearing land surrounding the scheme. (1) The type of market failure represented by the scenario is a/an negative externality public good asymmetric information positive externality O O O O

SCENARIO: Developers of a new housing scheme spend money putting in roads, lighting and clearing land surrounding the scheme. (1) The type of market failure represented by the scenario is a/an negative externality public good asymmetric information positive externality O O O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

SCENARIO: Developers of a new housing
scheme spend money putting in roads, lighting
and clearing land surrounding the scheme.
(1) The type of market failure represented by the
scenario is a/an
negative externality
public good
asymmetric information
positive externality
O
O

(2) The market fails in this scenario because
no market transaction takes
place
goods are underproduced
goods are over produced
no private provision
O
O
O
O

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