Why Do US Economists Commonly Refer to Externalities as an Example of Example

question 83

Multiple Choice

Why do U.S. economists commonly refer to externalities as an example of market failure?

• A) firms that are required to pay social costs of externalities produce more
• B) externalities present a case where markets consider all social costs
• C) externalities present a case where markets only consider some social costs
• D) firms avoid having to pay social costs of externalities by lowering prices

---

Definitions:

Painful Intercourse

Discomfort or pain during sexual activity, medically known as dyspareunia, which can have physical or psychological causes.

Proper Lubrication

The application of a substance (such as oil) to reduce friction between surfaces in motion, critical in machinery maintenance and bodily functions.

Low Sexual Desire

A decrease in the interest or desire for sexual activity, which can be influenced by psychological, physiological, or relational factors.

Sexual Desire

The psychological or emotional interest in sexual activity or objects, which can vary across different individuals.