The Existence of Externalities in a Market Implies That

question 106

Multiple Choice

The existence of externalities in a market implies that:

• A)resources are being used efficiently.
• B)there is no other allocation of resources that would make society as a whole better off.
• C)consumers cannot be excluded from consuming the good once it is provided.
• D)resources are not being used in their highest valued activity.
• E)the societal welfare as a whole is maximized.

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Definitions:

Carbon Monoxide

A colorless, odorless, and toxic gas produced by incomplete combustion of carbon-containing materials.

Sea Salt

Salt produced through the evaporation of seawater, used in cooking and cosmetics, and containing minerals not found in table salt.

Soil Porosity

The measure of the void spaces in soil, affecting its ability to hold water and air, crucial for plant roots and soil organisms.

Soil Texture

The feel of the soil, determined by the proportion of sand, silt, and clay particles within it.