When the Government Intervenes in Markets with Externalities, It Does

question 306

Multiple Choice

When the government intervenes in markets with externalities, it does so in order to

• A)increase production when negative externalities are present.
• B)protect the interests of bystanders.
• C)make certain all benefits are received by market participants.
• D)reduce production when positive externalities are present.

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Definitions:

Global Temperatures

The average temperature of the Earth's surface as it varies across different regions and over time, indicating trends in climate change.

EPA Standards

Regulations set by the Environmental Protection Agency aimed at protecting human health and the environment.

Water Systems

Infrastructure and resources designed for the delivery, treatment, and distribution of water for consumption, sanitation, and irrigation.

Drinking Water

Water that is safe to drink or to use for food preparation, treated to remove contaminants and pathogens.