Task are these statements true or false? Explain

TASK 1. ARE THESE STATEMENTS TRUE OR FALSE? EXPLAIN.
1. If there are market failures, the free action of market forces does not ensure Pareto efficiency in the economy.
2. In a monopolized market, the producer sets the price at the level of marginal cost.
3. In the case of a positive external effect, the production of goods is carried out in volumes exceeding the socially desired (optimal) level.
4. Internalization of external effects involves the transformation of an external effect into an internal one.
5. The stabilization function of public finances is expressed in adjusting the allocation of resources in the economy, if it is characterized by inefficiency due to the existence of market failures.


TASK 2. Match the terms and their definitions.

Terms	Definitions
The public sector of the economy	goods that have the properties of non-excludability and non-rivalry in consumption
Public finance	a state of the commodity market, in which the satisfaction of demand in this market is more efficient in the absence of competition due to the technological features of production (due to a significant decrease in production costs per unit of goods as the volume of production increases)
Gross domestic product	such a state of an economic system in which no indicator of the system can be improved without worsening any other indicator
Natural monopoly	a tax on the output of goods with negative externalities that raises marginal private costs to the level of marginal social costs
Pareto efficiency	a statement of the new institutional economic theory, according to which, at zero transaction costs, the market copes with any external effects
Public goods	a form of organization of monetary relations, in which the state is a participant in one form or another
Information asymmetry	a change in the economic situation, in which an increase in the well-being of at least one economic agent occurs without worsening the well-being of the rest
The Coase theorem	the uneven distribution of information between the parties of a contract
A Pigou corrective tax	the value of final goods and services produced in the territory of a given country for a certain period of time
Pareto improvement	a set of resources at the direct disposal of the state