A Plausible Example of Market Failure Due to an Externality

question 79

Multiple Choice

A plausible example of market failure due to an externality is

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

Understand the concept of ethical expectations and behavior within an organization.

Recognize conflicts of interest and how they impact business ethics.

Identify the stages of moral and ethical development in the workplace.

Understand the role of integrity and loyalty in adhering to ethical principles in business situations.

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Definitions:

Security System

A combination of hardware and software used to prevent unauthorized access to a building or computer network.

Display Case

A fixture used in stores for showcasing merchandise or collectibles, often featuring glass or clear plastic sides for visibility.

Advertising Expenses

Costs incurred to promote products or services through various media to attract customers.

Monthly Rent

A recurring expense for using property or equipment, paid on a monthly basis.