Private Markets Fail to Account for Externalities Because

question 155

Multiple Choice

Private markets fail to account for externalities because

• A)externalities don't occur in private markets.
• B)sellers include costs associated with externalities in the price of their product.
• C)decisionmakers in the market fail to include the costs of their behavior to third parties.
• D)the government cannot easily estimate the optimal quantity of pollution.

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Definitions:

Behavioral Genetics

studies the role of genetics and the environment in influencing behavior, examining how heredity interacts with experience to shape who we are.

Identical Twins

Siblings who are genetically identical to each other because they were conceived from the same egg and sperm, and hence share all of their genes.

Fraternal Twins

Twins who are born at the same time but developed from two different eggs fertilized by two different sperm, resulting in genetically distinct siblings.

Genetics

The study of genes, genetic variation, and heredity in living organisms, and how these affect physical and behavioral traits.