Which of the Following Suggests That the Private Market Can

question 62

Multiple Choice

Which of the following suggests that the private market can be effective in dealing with externalities?

• A) the 'invisible hand'
• B) the law of diminishing social returns
• C) the Coase theorem
• D) the law of increasing social returns

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Definitions:

Individual Differences

Variabilities among individuals in behavior, biology, and cognition, which make each person unique.

Heredity

The genetic transmission of characteristics from parents to offspring, influencing qualities such as appearance, certain behaviors, and risks for specific diseases.

Social And Historical Context

Refers to the environment or background influenced by societal norms and historical events that shape the understanding, behavior, and interactions of individuals or societies.

Biological Context

The environmental and genetic circumstances that influence an organism's development and functioning.