When Externalities Cause Markets to Be Inefficient

question 150

Multiple Choice

When externalities cause markets to be inefficient,

• A)government action is always needed to solve the problem.
• B)private solutions can be developed to solve the problem.
• C)given enough time, externalities can be solved through normal market adjustments.
• D)there is no way to eliminate the problem of externalities in a market.

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Definitions:

Persona

The social face or character that an individual presents to the world, often distinct from their authentic self.

Actors

Actors are performers who portray characters in film, television, theater, or other performance settings, using their talent to convey the story to the audience.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.

Stable

Describes a condition or state that is not easily changed, disturbed, or prone to emotional fluctuation; denotes reliability and consistency.