When There Is an Externality in a Market

question 214

Multiple Choice

When there is an externality in a market,

• A)the externality will move the market to an economically efficient equilibrium.
• B)the externality will cause the market price to be less than or greater than the equilibrium price.
• C)the government should use price controls to enable the market to reach equilibrium.
• D)government intervention may increase economic efficiency.

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Definitions:

Ethical Implications

The consideration of how actions, decisions, or policies affect moral principles and standards of conduct within society or an organization.

Keyboard Design

The process of designing layouts and key arrangements in keyboards to optimize ergonomics and efficiency in typing.

Noisy Work Environment

Refers to workplaces where the sound levels are excessively high, potentially leading to distraction or hearing impairment.

Dangerous Materials

Substances that pose risks to health, safety, property, or the environment due to their chemical, physical, or biological characteristics, necessitating careful handling and transport.