Externalities Are Failures of

question 27

Multiple Choice

Externalities are failures of

• A)the market to correctly price resources.
• B)firms and consumers to make rational tradeoffs.
• C)firms to make rational tradeoffs.
• D)consumers to make rational tradeoffs.

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Definitions:

Tail Bone

The common term for the coccyx, the small bone at the base of the vertebral column in humans, consisting of several fused vertebrae.

Lateral Malleolus

The bony prominence on the outer side of the ankle, forming part of the fibula.

Fibula

A long, thin bone located on the lateral side of the tibia in the lower leg, playing a key role in stabilizing the ankle and supporting lower leg muscles.

Hyoid Bone

U-shaped bone between the mandible and larynx.