Markets Are Often Inefficient When Negative Production Externalities Are Present

question 192

Multiple Choice

Markets are often inefficient when negative production externalities are present because:

• A)private costs exceed social costs at the private market solution
• B)externalities can never be corrected without government regulation
• C)social costs exceed private costs at the private market solution
• D)production externalities lead to consumption externalities

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Definitions:

Egocentric

A cognitive perspective where an individual has difficulty understanding or assuming any perspective other than their own.

Social Experience

The exposure and interaction an individual has within a social context, shaping their perceptions, behaviors, and understanding of social norms.

Zone Of Proximal Development

The Zone of Proximal Development is a theory in educational psychology that describes the difference between what a learner can achieve independently and what they can achieve with guidance and encouragement from a skilled partner.

Cognitive Task

An activity designed to assess or engage mental processes such as memory, attention, problem-solving, and decision-making.