All Externalities

question 458

Multiple Choice

All externalities

• A)cause markets to fail to allocate resources efficiently.
• B)cause equilibrium prices to be too high.
• C)benefit producers at the expense of consumers.
• D)cause equilibrium prices to be too low.

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Definitions:

Journal Entries

Written records that document financial transactions in the accounting system, serving as the primary means of recording business activities.

Cash

Money in the form of currency, which includes coins and paper bills, used as a medium to exchange goods and services.

Advertising

The action of calling public attention to products, services, or events, often through paid announcements by an identified sponsor.