One of the Reasons Why Private Markets Produce Less Than

question 137

Multiple Choice

One of the reasons why private markets produce less than the socially optimal level of goods that yield positive externalities is that

• A) producers do not know that their goods yield positive externalities.
• B) the market does not benefit from goods that yield positive externalities.
• C) positive externalities are often unpriced.
• D) those goods are usually taxed heavily.
• E) prices are already too high and consumers refuse to pay more.

---

Definitions:

Civil Rights Activists

Individuals or groups who advocate for the protection and expansion of rights and equality for all under the law, often focusing on ending discrimination based on race, gender, sexual orientation, or other factors.

James Baldwin

An acclaimed American writer and social critic known for his essays, novels, and plays that explore themes of race, sexuality, and class in mid-20th century America.

Roe V. Wade

The 1973 U.S. Supreme Court decision that recognized a woman’s legal right to an abortion under the U.S. Constitution.

Environmental Movement

A social and political movement focused on advocating for the protection of the environment and addressing issues such as pollution and climate change.