If a good gives rise to substantial external benefits to society that are associated with its ...

If a good gives rise to substantial external benefits to society that are associated with its production and/or consumption, then the good likely has too many resources devoted to its production.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Examples of market failure include lack of competition, externalities, public goods, and income inequality.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Price floors typically improve market efficiency.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Assume a price floor is set above the equilibrium price. The result is a surplus.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

A price floor is a price set below equilibrium by government and it creates a shortage.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

Assume a price floor is set above the equilibrium price. The result is a shortage.
 a. True
  b. False
  Indicate whether the statement is true or false