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:

Double Bond

A chemical bond in which two pairs of electrons are shared between two atoms, usually making the compound more reactive than a single bond.

Molecule

A molecule is a group of two or more atoms held together by chemical bonds.

Single Bonds

Chemical bonds formed by the sharing of one pair of valence electrons between two atoms, characterized by their relatively low energy.

Carbon Monoxide

A colorless, odorless, and tasteless gas with the chemical formula CO, highly toxic to humans and animals when inhaled.