Economics Help? PLEASE HELP!!! Thanks!!?

1) Which of the following would best illustrate the government's effort to ensure market competition? a) Restricting environmental pollution b) Building roads and bridges c) Reducing speed limits on the nation's highways d) Enforcing antitrust laws 2) An external cost is a) a... show more 1) Which of the following would best illustrate the government's effort to ensure market competition?

a) Restricting environmental pollution

b) Building roads and bridges

c) Reducing speed limits on the nation's highways

d) Enforcing antitrust laws


2) An external cost is

a) a cost paid by someone other than the decision maker who incurred it.

b) a cost paid by consumers for the costs associated with government regulations.

c) a tax levied by government to cover the costs of providing public services.

d) a tax levied by either federal or state legislators to discourage unfair trade laws.


3) Which of the following best illustrates the concept of an external cost?

a) A business charges customers extras to cover the cost of regulatory compliance.

b) A wholesale outlet is charge higher insurance costs because of the store's location.

c) A factory pours toxic waste into a nearby stream, causing harm to a nearby town.

d) A consumer returns merchandise to a retail store, claiming the goods were defective.


4) If some activity creates external costs as well as private costs, then economic theory suggests that the
activity ought to be:

a) Left alone

b) Prohibited by law

c) Encouraged with subsidies

d) Discouraged by taxes or other measures
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