It Is Generally Difficult or Impossible for Private Markets to Take

question 120

Multiple Choice

It is generally difficult or impossible for private markets to take externalities into account because:

• A)decision makers in the market fail to take account of the spillover effects of their behaviour
• B)buyers and sellers in private markets are only interested in social wellbeing
• C)people are only interested in short-term gains
• D)governments are responsible for externality problems