When External Costs Are Present

question 29

Multiple Choice

When external costs are present,

• A)There is market failure.
• B)There is government failure.
• C)Private costs are greater than social costs.
• D)The market conveys the full costs of production.

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Definitions:

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Tachycardia

An abnormally fast heart rate, usually over 100 beats per minute in adults, indicating potential heart or health problems.

Hyperventilation

Rapid or deep breathing that can lead to reduced carbon dioxide levels in the blood, causing symptoms like light-headedness or tingling of the limbs.

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.