Market Power and Externalities Are Examples of Market Failures

question 55

True/False

Market power and externalities are examples of market failures.

---

Definitions:

Grenville's Argument

a reference to the rationale used by British Prime Minister George Grenville to justify the imposing of taxes on the American colonies, arguing it was fair to have them contribute to the costs of their own defense.

Colonial Resistance

Opposition and acts of defiance by the American colonies against British rule, particularly leading up to and during the American Revolution.

Tax Increases

Governmental policy action that raises the amount of taxes on income, property, goods, or services, often to generate revenue for public projects or reduce deficits.

Business Interests

Activities or concerns that are primarily focused on the pursuit of profit and economic growth, often guiding corporate or individual investments and strategies.