It Is Generally Difficult or Impossible for Private Markets to Take

question 120

Multiple Choice

It is generally difficult or impossible for private markets to take externalities into account because:

• A)decision makers in the market fail to take account of the spillover effects of their behaviour
• B)buyers and sellers in private markets are only interested in social wellbeing
• C)people are only interested in short-term gains
• D)governments are responsible for externality problems

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Definitions:

Mnemonic Device

A technique that aids in remembering information, such as a pattern of letters, ideas, or associations.

Business Environment

The combination of external and internal factors that influence a company's operating situation, including economic, legal, technological, and competitive elements.

Marketing Strategy

The overall plan a business follows to reach potential consumers and turn them into customers of their product or service, focusing on what to sell, who to sell to and how to reach them.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes or scenarios.