Examlex
Indicate whether the following actions would (+) increase, (?) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity.
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Market Failure
A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.
Allocated Efficiently
Refers to the optimal distribution of resources and goods in a way that maximizes the welfare or utility of consumers.
External Costs
Expenses that a business or economic activity imposes on unrelated third parties or the environment, which are not reflected in market prices.
External Benefits
External Benefits are positive effects of a production or consumption activity on third parties who did not directly participate in the economic transaction.
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