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The task of economic regulation is to approximate the results of the competitive market. ( )

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Imperfectly competitive firms are characterized by horizontal demand curves. ( )

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Internalizing an externality means incentives are altered so that people take account of the external effects of their actions.( )

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Which of the following is NOT a characteristic of a public good? ( )

A. It requires resources to produce.
B. It is not diminished or depreciated as additional people consume the good.
C. Its benefits cannot be withheld from anyone.
D. It is a free good with zero opportunity cost.

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Which of the following would be the best example of a public good? ( )

A candy bar.
B. A painting by Monet.
C. A beautiful sunset.
D. A crowded beach.

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