Markets Are Often Inefficient When Negative Externalities Are Present Because

question 507

Multiple Choice

Markets are often inefficient when negative externalities are present because

• A)private costs exceed social costs at the private market solution.
• B)externalities cannot be corrected without government regulation.
• C)social costs exceed private costs at the private market solution.
• D)production externalities lead to consumption externalities.

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Definitions:

Social Cognitive Psychologist

A professional in psychology who studies how people's thoughts, feelings, and behaviors are influenced by observing others, as well as by their interactions in social contexts.

Environment

The environment or circumstances in which an individual, creature, or vegetation exists or functions.

Personality

The mix of traits or features that create a person's unique personality.

Behavior

The actions or reactions of an organism or system, usually in response to external stimuli.