ECON 2101
Georgia Institute of Technology
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Chapter-10_multiple
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Chapter-10_multiple
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Chapter-10_multiple
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Exam (elaborations) ECON 2101
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Exam (elaborations) ECON 2101 Exam+1+KEY
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ECON 2101 Chapter 10 Externalities Sec00 MULTIPLE CHOICE QUESTIONS AND ANSWERS.
- Study guide • 82 pages • 2020
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1. In a market economy, government intervention
a. will always improve market outcomes.
b. reduces efficiency in the presence of externalities.
c. may improve market outcomes in the presence of externalities.
d. is necessary to control individual greed.
ANS: C DIF: 1 REF: 10-0
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Externalities MSC: Applicative
2. In the absence of externalities, the "invisible hand" leads a market to maximize
a. producer profit from that marke...
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