When Externalities Are Present in a Market,what Is the Result

question 124

Multiple Choice

When externalities are present in a market,what is the result

• A)The established equilibrium maximizes the total benefit to society as a whole.
• B)Market participants lose some market benefits to bystanders.
• C)Both equity and efficiency are maximized.
• D)The market fails to allocate resources efficiently.

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Definitions:

Contribute

To give or donate something, such as resources, ideas, or money, towards a common goal or project.

Benefit

An advantage, profit, or gain received from something.

Second Job

Employment taken in addition to one's primary job, often to earn extra income or gain additional experience.

Full Time

Employment status where an individual works a minimum number of hours as defined by the employer, typically considered to be around 35 to 40 hours per week.