Answered: The costs or benefits of a market…

The costs or benefits of a market activity that affect a third party are called: A) externalities. B) public goods. C) common resource goods. D) artificially scarce (or club) goods.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 20SQ

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Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.

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The costs or benefits of a market activity that affect a third party are called:
A) externalities.
B) public goods.
C) common resource goods.
D) artificially scarce (or club) goods.

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The socially optimal outcome is the outcome that: Select one: a. has the most externalities. b. is most efficient for society as a whole, including for buyers, sellers, and bystanders. c. has the most benefits for society as a whole, regardless of the costs involved. d. benefits the largest number of people.
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Public goods are normally produced by the government because:Response option group (a) The private production of a public good is not in the interest of the government (b) It is impossible for the private company to charge a reasonable fee to all those who enjoy the benefits of the public good, so it is not profitable to produce such good (c) The private company does not have the necessary technology to produce public goods (d) The public demands that only the government provide public goods (e) None of the above
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