What Do Externalities Cause Markets to Do

question 139

Multiple Choice

What do externalities cause markets to do

• A)fail to allocate resources efficiently
• B)cause price to be different than the equilibrium price
• C)benefit producers at the expense of consumers
• D)cause markets to operate more equitably

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Definitions:

Cognitive Development

The process by which individuals acquire and evolve in their problem-solving abilities, memory, perception, and language.

Conservation of Volume

Conservation of volume is a concept in cognitive development identified by Piaget, indicating a child's understanding that the volume of liquid remains unchanged despite the shape of its container.

Working Memory

Working memory is a cognitive system responsible for temporarily holding and processing information needed for complex tasks like learning, reasoning, and comprehension.

Knowledge Base

A centralized repository of information, often in a computer system, that allows for the storage, retrieval, and management of data, facts, and information.