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External costs occur because
a. Private costs do not reflect the full costs to society.
b. Government failure increases costs for the firm.
c. All costs are absorbed by the firm.
d. Firms make a choice other than the most cost-efficient production method.

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Divya Singh
Divya SinghLv10
21 Oct 2020

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Related questions

8. In case of market failure, the private market fails to achieve efficient output because:

a. firms do not account for all costs incurred in the production of output

b. consumers do not account for all benefits obtained (a positive externality).

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d. none of the above

44. The endangered species act has:

a. had no impact on the number of endangered or other economic activities

b.causeed a loss of economic activities on some private land

c. further reduced the number of endangered species

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42. Which type of property would experience pollution?

a. common property

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41. One difficulty in using voluntary transactions to internalize externalities is that:

a. people usually don't understand what real opportunity cost is and that they face

b. people are motivated by self-interest and are often unwilling to engage in a transaction that might make another person better off

c.transactions costs of coming to an agreement can be very large when numerous people are involved

d.the government will not usually enforce contracts of this type

37. If pollutants from smokestacks in a city such as Newark cause people to paint their homes and cars more frequently, this implies:

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d. the market does not always reflect the true costs of economic behavior. 

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