When External Benefits Are Present

question 16

Multiple Choice

When external benefits are present

• A) competitive markets are efficient.
• B) competitive markets are inefficient.
• C) a tax is required to eliminate the inefficiency.
• D) property rights have already been established.

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Definitions:

UV Radiation

is ultraviolet light from the sun, which can cause sunburn and has significant implications for both human health and the environment.

Food Production

Food production encompasses the processes involved in getting food from the farm to the consumer's table, including farming, harvesting, processing, packaging, and distribution.

Ozone

A molecule made up of three oxygen atoms, known for its role in protecting Earth from harmful ultraviolet radiation in the stratosphere and its contribution to air pollution at ground level.

Sea Levels

The average height of the ocean's surface between high and low tide, which is affected by climate change leading to rising or falling trends over time.