When Externalities Cause Markets to Be Inefficient

question 150

Multiple Choice

When externalities cause markets to be inefficient,

• A)government action is always needed to solve the problem.
• B)private solutions can be developed to solve the problem.
• C)given enough time, externalities can be solved through normal market adjustments.
• D)there is no way to eliminate the problem of externalities in a market.

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Definitions:

Negotiation Skills

The abilities that allow individuals to reach agreements or compromises by discussion, aiming for mutually beneficial outcomes.

Sales Presentation

A sales presentation is a structured pitch where a product or service is explained and promoted to potential customers, aiming to secure a sale or agreement.

Office Networking Systems

Refers to the digital and technological infrastructure that supports communication and resource sharing within an office or organization.

New Customer

An individual or entity who has never previously purchased from or engaged with a business.