A Plausible Example of Market Failure Due to an Externality

question 18

Multiple Choice

A plausible example of market failure due to an externality is

• A)a farmer with an apple orchard who also keeps bees.
• B)the cost of building new highways outside of major cities.
• C)the high salaries enjoyed by professional athletes.
• D)the despoiling of rivers and lakes by nitrogen run- off from agricultural fertilizers.
• E)the line- ups at the theatre when a good movie is playing.

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Definitions:

Reading Speed

The rate at which a person can read text, often measured in words per minute (wpm), which can be influenced by the reader's skill, the complexity of the text, and the purpose of reading.

Adult Reading

The practice or ability of reading and comprehending texts commonly undertaken by individuals post-adolescence.

Iconic Memory

A type of visual sensory memory that retains an exact copy of what is seen, lasting only a fraction of a second.

Working Memory

A cognitive entity of limited scope, tasked with the interim preservation of information for processing.