Markets Are Often Inefficient When Negative Externalities Are Present Because

question 507

Multiple Choice

Markets are often inefficient when negative externalities are present because

• A)private costs exceed social costs at the private market solution.
• B)externalities cannot 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:

Stress Relief

Methods or strategies used to reduce tension, anxiety, or the physiological and psychological effects of stress.

Entertainment

The act or activity designed to provide pleasure, amusement, or relaxation to an audience, typically involving performances, shows, or games.

Exercise

Physical activities intended to improve strength, fitness, and wellbeing, ranging from walking and swimming to weightlifting and yoga.

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Disorders affecting the quality, timing, and amount of sleep, leading to distress and impairment during waking hours.