Externalities

question 81

Multiple Choice

Externalities:

• A)are one of the most common causes of market failure.
• B)are present in most markets.
• C)are present in all but perfectly competitive markets.
• D)can increase total surplus if it's positive.

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Definitions:

World Trade Agreement

A legally binding agreement between two or more countries designed to lower trade barriers and foster international trade.

International Trade

The exchange of goods and services across international borders, influenced by comparative advantages, exchange rates, and global economic policies.

Netherlands

A country in Northwestern Europe known for its flat landscape, canals, tulip fields, windmills, and cycling routes.

Exports

Products or services manufactured in a particular country and purchased by consumers in a different country, adding to the national income of the exporter.