O the economy can benefit from government intervention. O a person engages in an activity that influences the well-being of a bystander and yet neither pays nor receives payment for that effect. O markets are not able to reach equilibrium. Oa firm sells its product in a foreign market.

O the economy can benefit from government intervention. O a person engages in an activity that influences the well-being of a bystander and yet neither pays nor receives payment for that effect. O markets are not able to reach equilibrium. Oa firm sells its product in a foreign market.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter5: Difficult Cases For The Market And The Role Of Government

Section: Chapter Questions

Problem 10CQ

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Question

An externality exists whenever
O the economy can benefit from government intervention.
a person engages in an activity that influences the well-being of a bystander and yet neither pays nor
receives payment for that effect.
O markets are not able to reach equilibrium.
O a firm sells its product in a foreign market.

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