Market Failure in the Form of Externalities Arises When

question 38

Multiple Choice

Market failure in the form of externalities arises when

• A) production costs are included in the prices of goods.
• B) there are costs and/or benefits that result from a transaction and affect someone other than the parties involved in the transaction.
• C) the benefits exceed the costs of consuming goods.
• D) the market fails to achieve equilibrium.

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Definitions:

Unrepresentative Sample

A sample that fails to accurately mirror the population from which it was drawn, potentially leading to skewed research findings.

Argument Form

The structure or pattern of reasoning used in making a logical argument.

Appeal to Pity

A logical fallacy that attempts to win an argument by exploiting the opponent's feelings of pity or guilt rather than by logic or reason.

Disagreement

A situation where two or more parties hold differing views, opinions, or positions on a particular issue or topic.