UGC NET Economics Q80

Question

Which of the followings are true in case of externality?
A. In case of externality, all costs and benefits associated with the goods are not internalized by households and firms involved in buying and productions.
B. Presence of externality results either under production or over production of the good.
C. Market based decision making yields an efficient outcome in the presence of externality.
D. In case of negative externality, the marginal social cost is higher than marginal cost.
E. Well defined property right can solve the problem of externality.
Choose the most appropriate answer from the options given below:

Accepted Answer

A, B, D & E Only