If Market Signals Result in Pollution Beyond the Optimal Level,then

question 17

Multiple Choice

If market signals result in pollution beyond the optimal level,then

• A)The economy experiences government failure.
• B)A laissez faire approach will reduce the level of pollution.
• C)The market mechanism has failed to achieve social efficiency.
• D)The government is allocating resources inefficiently.

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Definitions:

Capital upon Dissolution

The remaining assets available for distribution to the shareholders or partners after a firm's liabilities have been settled during dissolution.

Limited Liability

The legal principle where an individual's financial risk is restricted to a fixed amount, typically the value of their investment in a company, protecting personal assets from business debts and obligations.

Corporate Constitutional Rights

The legal rights and protections granted to corporations, treating them as entities that can exercise certain rights similar to individuals.