Pollution Would Be an Example of a Market Failure Because

question 14

Multiple Choice

Pollution would be an example of a market failure because it

• A)represents imperfect information.
• B)is often caused by firms that are a monopolies.
• C)is a non-excludable public good.
• D)represents an externality where costs of production are born by someone other than the producer.

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Definitions:

Value-Added Taxes

A tax on the amount by which the value of an article has been increased at each stage of its production or distribution.

Final Customer

The end user or consumer who purchases a product or service for personal use and not for resale or further processing.

Homeshoring

A practice where businesses hire employees to work from home or a remote location rather than in a traditional office setting, often used as an alternative to offshoring.

Reshoring

The process of bringing back manufacturing and services to a country from overseas to strengthen the local economy and reduce reliance on foreign suppliers.