42. states that markets can reduce the problem of externalities without direct government involvement in the production process by using well-designed property rights.
A. Marketable Permits
C. Coasean Theorem
B. Hotelling Theorem
D. Command and Control Approach
43. The concept of externality indicates that:
A. positive externalities lead to excess production.
B. when externalities are existed, the price of products reflects its social value.
C. negative externalities alone are a source of economic inefficiency.
D. externality occurs when exclusivity fail to function properly.
44. If the marginal benefit of the resource is greater than the marginal cost of the resource, then the allocation is:
A. efficient and more resource should be produced.
B. inefficient and more resource should be produced.
C. efficient and less resource should be produced.
D. inefficient and less resource should be produced
45. When positive externalities are present in the market;
A. Private costs will be greater than social costs,
B. Social costs will be greater than private costs.
C. Social benefits will be greater than private benefits.
D. Private benefits will be greater than social costs.
Economics
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