11 . If an externality is internalized, then a. Less of the good is produced. b. The good now has a higher price. c. Both a) and b) are correct. d. There is not information to say what happens to the price and quantity, but the new outcome is more efficient. 12. Agood with negative externalities in the private unregulated (unfettered) market will have a. Too much production for economic efficiency. b. Too little production for economic efficiency. c. Either too much or too little production for economic efficiency. d. The correct amount for economic efficiency. 13. What do economies of scale and licensing have in common? a. They are both characteristics of a perfectly competitive industry. b. They are both characteristics of revenue maximizing firms. c. They invalidate the principle of self-interest. d. They can cause barriers to entry. 14. A special health care policy attracts mostly those with chronic health conditions and hardly anyone else. This illustrates the problem of a. Moral hazard b. Adverse selection c. Both of these