When Externalities Cause Markets to Be Inefficient

question 150

Multiple Choice

When externalities cause markets to be inefficient,

• A)government action is always needed to solve the problem.
• B)private solutions can be developed to solve the problem.
• C)given enough time, externalities can be solved through normal market adjustments.
• D)there is no way to eliminate the problem of externalities in a market.

---

Definitions:

Chronic Illness

A long-lasting health condition that can be controlled but not cured, often requiring ongoing management.

Asthma Attacks

Episodes of intensified asthma symptoms such as wheezing, coughing, shortness of breath, and chest tightness.

HIV Prevalence

The proportion of individuals in a population who are infected with the Human Immunodeficiency Virus (HIV) at a given time.

HIV Incidence

The rate at which new cases of Human Immunodeficiency Virus are diagnosed in a population over a specific time period.