When Dealing with Consumption Externalities, Government Can Potentially Correct the Market

question 68

Multiple Choice

When dealing with consumption externalities, government can potentially correct the market failure:

• A)only in the case of positive consumption externalities
• B)only in the case of negative consumption externalities
• C)in both the positive and negative cases by inducing market participants to internalise the externality
• D)in neither the positive or negative cases because governments can only correct production externalities

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Definitions:

Reflexive Motor Output

Automatic bodily movements triggered by stimuli without conscious thought, as part of the body's involuntary response system.

Glia-to-Neuron Ratio

The numerical relationship between glial cells and neurons in a specific area of the brain or nervous system.

Lateral Fissure

The lateral fissure, also known as the Sylvian fissure, is a prominent groove that separates the temporal lobe from the frontal and parietal lobes in the brain.

Inferior Parietal Cortex

A part of the parietal lobe involved in processing sensory information and integrating it in various cognitive processes, including spatial sense and navigation.