Market imperfections abound in Canada, brought about by externalities. If some activity creates external benefits as well as private benefits, then economic theory suggests that the activity ought to be Multiple Cholce shut down. prohibited. left alone. taxed. subsidized.

Market imperfections abound in Canada, brought about by externalities. If some activity creates external benefits as well as private benefits, then economic theory suggests that the activity ought to be Multiple Cholce shut down. prohibited. left alone. taxed. subsidized.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 16PAE

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

Q15

Market imperfections abound in Canada, brought about by externalities. If some activity creates external benefits as well as private benefits, then economic theory suggests that the activity ought to be:
Multiple Cholce
shut down.
prohiblted.
left alone.
taxed.
subsidized.

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