Question

In a country where only two goods are produced and consumed, the production and consumption of Good X results in external benefits, while the production and consumption of Good Y results in external costs. Would unregulated markets produce too much or too little of Good X and Good Y, compared to the efficient output levels for these products?

Answer 1

Answer:

Would unregulated markets produce too much or too little of Good X and Good Y, compared to the efficient output levels for these products?

Explanation:

Good X: Too Little

Good Y: Too Much