Externalities Are Failures of

question 27

Multiple Choice

Externalities are failures of

• A)the market to correctly price resources.
• B)firms and consumers to make rational tradeoffs.
• C)firms to make rational tradeoffs.
• D)consumers to make rational tradeoffs.

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Definitions:

Paralegal

A trained professional who assists lawyers in researching, preparing legal documents, and other tasks, operating under the supervision of an attorney.

Loss Aversion

Tendency for individuals to prefer avoiding losses over acquiring gains.

Stock Market

A marketplace where shares of public companies are bought and sold, providing a platform for the issuance and trading of equity securities.

Investor

An individual or entity that allocates capital with the expectation of obtaining a financial return or profit.