Question

Question Completion Status: QUESTION 1 exists in society. When I benefit because you increase your education a ca. positive private cost b. positive private benefit C. negative externality d. positive externality QUESTION 2 When a positive externality is present the market will produce a. too little and charge more than a fair market value price. b. too little product and charge less than a fair market value price. C. an efficient amount and charge a fair price. d. too much product and charge a price greater than a fair market value price. QUESTION 3 The refers to a policy that limits free trade between countries. a. privatization b. liberalism C. socialism d. protectionism QUESTION 4 One argument for limiting international trade is a. that domestic producers lose from international trade b. the domestic consumers lose from international trade c. the only the foreign suppliers lose from international trade d. that benefits are received by the domestic producers facing imports Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Answer 1

a) "D"

A positive externality exists in the market i.e. a third person will benefit from the economic transaction between two people.

b) "A"

The market will be producing more than a fair market value and will be charging higher.

c) "D"

Protectionism is adopted by the government to restrict the trade in the market.

d) "A"

the domestic producers lose from the international trade.