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:

Voltage

The electrical potential difference between two points, or the force that drives an electric current between those points.

Armature

The rotating part of an electric machine, such as a motor or generator, around which the electromotive force is generated.

Pulse-width

The duration of time that a pulse in a pulse modulation system is at a high or significant level, important in determining signal characteristics.

ServoDisc Motor

A motor that employs a printed circuit board as the armature.