If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?
A. a production externality
B. a second-best solution
C. transaction costs
D. a consumption externality
Related Questions on Market & Non-Tariff Trade Barriers Mcqs
A. externality
B. market imperfection
C. deadweight burden
D. free rider
A good example of a public good is ?
A. public transport
B. the national health service
C. national defence
D. rail transport
Market failure may arise because of ?
A. imperfect competition
B. taxation
C. externalities
D. missing markets
E. all of the above
A competitive equilibrium is Pareto-efficient because ?
A. Producers are price takers
B. consumers and producers face the same prices
C. marginal costs and benefits are equal
D. prices equal marginal cost and benefit
E. All of the above
A. moral hazard
B. risk aversion
C. adverse selection
D. a poor gamble