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10. When the production of a product creates external benefits greater than external costs, a
market economy is: A. Not produce the product without government intervention B. Produce a
socially optimal allocation of resources C. Allocate too few resources to production of the
product D. Allocate too many resources to production of the product

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10- When the production of a product creates external benefits greater.docx

  • 1. 10. When the production of a product creates external benefits greater than external costs, a market economy is: A. Not produce the product without government intervention B. Produce a socially optimal allocation of resources C. Allocate too few resources to production of the product D. Allocate too many resources to production of the product