5 Questions
True or false: Externalities are one of the main reasons governments intervene in the economic sphere?
True
True or false: Externalities can have both positive and negative effects on society?
True
True or false: Technical externalities occur when the price of a product takes into account the indirect effects on consumption and production opportunities of others?
False
True or false: Private returns or costs are always the same as the returns or costs to society as a whole?
False
True or false: Externalities only occur when the indirect effects are large and problematic?
False
Test your knowledge on externalities and how prices may not accurately reflect all costs. This quiz explores the concept of externalities and how individual decisions can impact society as a whole.
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