Which of the Following Is True About the Market-Based Approach

question 30

Multiple Choice

Which of the following is true about the market-based approach to environmental responsibility?

• A)Market failure occurs when no markets exist to create a price for important social goods.
• B)Free market exchanges can guarantee optimal results for addressing issues related to externalities.
• C)The market-based approach always ensures that what is good and rational for a collection of individuals is also good and rational for a society.
• D)Markets can be very successful if important ethical and policy questions and policy decisions are left solely to the outcome of individual decisions.

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Definitions:

Foreign Companies

Businesses that are incorporated or registered outside of a country’s borders and operate within that country.

U.S. Commerce

Refers to the economic activities and trade within the United States, including transactions of goods and services.

Interstate Commerce Act

A United States federal law designed to regulate the railroad industry, particularly its monopolistic practices, by requiring reasonable and just rates with the establishment of the Interstate Commerce Commission.

Passed

To have been approved or made official, particularly in the context of legislation or examinations.