On the Fourth of July, There Is No Fireworks Display

question 448

Multiple Choice

On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?

• A)The lack of a fireworks display in Yankeeville arises because of an externality.
• B)The lack of a fireworks display in Yankeeville is a case of market failure.
• C)In deciding not to produce a fireworks display in Yankeeville, private individuals and private firms made decisions that were privately rational but socially inefficient.
• D)All of the above are correct.

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Definitions:

Ethical Decision-Making

Carrying out an assessment and making choices between alternatives while adhering to ethical norms.

Red Cross

An international humanitarian organization that provides emergency assistance, disaster relief, and education within communities affected by natural disasters, conflicts, or health crises.

Conscious Marketing

An approach to marketing that acknowledges and prioritizes the needs and welfare of stakeholders including customers, employees, and the environment.

Congressional Charter

An official license granted by the United States Congress that allows an organization to operate with specific privileges and immunities.