The Basic Reason That a Competitive Unregulated Market Produces an Inefficient

question 40

Multiple Choice

The basic reason that a competitive unregulated market produces an inefficient amount of a good with an external cost because

• A) producers cannot measure marginal social cost.
• B) producers do not pay the external cost.
• C) the general public does not care about external costs.
• D) external costs are not a political issue.
• E) the external cost is paid by consumers rather than producers.

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Definitions:

White Racism

A belief or doctrine asserting the superiority of white people over people of other racial backgrounds, often manifesting in social, economic, and political systems.

Nuclear Weapons

Explosive devices that derive their destructive force from nuclear reactions, either fission or a combination of fission and fusion, posing significant threats to global security.

Berlin Wall

A fortified barrier that divided East and West Berlin from 1961 to 1989, symbolizing the Cold War's division of East and West Germany, and by extension the world.

UN

The United Nations, an international organization founded in 1945 to promote peace, security, and cooperation among countries worldwide.