When a Positive Externality Exists, the Market Is Said to Fail

question 122

True/False

When a positive externality exists, the market is said to fail because it overproduces the good associated with the positive externality.

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Definitions:

Blood Flow

The movement of blood through the circulatory system, delivering oxygen and nutrients to the body and removing waste products.

Aortic Arch

The curved portion of the aorta between its ascending and descending parts, giving rise to branches that supply the head, neck, and upper limbs with blood.

Thrombus

A blood clot that forms in a blood vessel, potentially obstructing the flow of blood through the circulatory system.

Blood Flow

The continuous movement of blood through the circulatory system, delivering nutrients and oxygen to and removing wastes from cells and tissues.