While Economists Generally Agree That Markets Are a Good Way

question 185

Multiple Choice

While economists generally agree that markets are a good way to organise economic behaviour, there are some important exceptions.The exceptions include:

• A)some markets produce negative externalities
• B)some industries produce positive externalities
• C)some markets are characterised by market failure
• D)all of the above are true

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Definitions:

Dollar-Denominated Deposit

A deposit at a bank or financial institution available in U.S. dollars, regardless of the location of the bank or the nationality of the depositor.

Eurodollars

U.S. dollar-denominated deposits held in banks outside the United States, not under jurisdiction of the Federal Reserve.

Municipal Bonds

Debt securities issued by a state, municipality, or county to finance its capital expenditures, typically offering tax-free interest payments to investors.

Debt Obligation

A legally binding agreement to repay borrowed money, typically with interest, at predefined dates in the future.