When Externalities Cause Markets to Be Inefficient,what Can Solve the Problem

question 146

Multiple Choice

When externalities cause markets to be inefficient,what can solve the problem

• A)Government action is always needed to solve the problem.
• B)Private solutions can always be developed to solve the problem.
• C)Given enough time, externalities can be solved through normal market adjustments.
• D)Both private parties and government can provide solutions to the problem.

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Definitions:

Neuropathy

Damage or dysfunction of one or more nerves, typically resulting in numbness, pain, and weakness in the affected area.

Diabetic Retinopathy

An issue stemming from diabetes, this condition damages the blood vessels in the retina, the area at the back of the eye sensitive to light, affecting eyesight.

Pathology

The study and diagnosis of disease through examination of organs, tissues, bodily fluids, and whole bodies (autopsies).

Endocrine

A gland that secretes directly into the bloodstream.