Private Markets Fail to Account for Externalities Because

question 155

Multiple Choice

Private markets fail to account for externalities because

• A)externalities don't occur in private markets.
• B)sellers include costs associated with externalities in the price of their product.
• C)decisionmakers in the market fail to include the costs of their behavior to third parties.
• D)the government cannot easily estimate the optimal quantity of pollution.

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Definitions:

Illegal Ways

Actions or methods that are contrary to or forbidden by law.

Secondary Deviance

In labeling theory, the subsequent deviant identity or career that develops as a result of being labeled deviant.

Primary Deviance

The initial act of rule-breaking or deviant behavior before society labels it as such, which does not yet affect an individual’s self-concept or societal identification.

Deviant Label

The branding of behaviors or individuals that deviate from societal norms as wrong or abnormal, influencing how they are perceived and treated by others.