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:

Employment Opportunities

Available positions or jobs within the economy that employ individuals to work.

Poorest Countries

Nations with the lowest indicators of socioeconomic development, often characterized by low GDP per capita, poor infrastructure, and high levels of poverty.

Population

The total population within a certain area or nation.

Fertility Rates

The average number of children born to a woman over her lifetime in a specific population.