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:

Fixed-ratio Schedule

A type of reinforcement schedule in operant conditioning where a response is reinforced only after a specified number of responses, leading to high and steady response rates.

Reinforcement

In psychology, a process in which a behavior is made more likely to occur in the future by its consequences.

Specific Number

A distinct or precisely identified quantity, often used in mathematical or statistical contexts.

Randomly Varying

Describes a process or phenomenon that changes unpredictably, without a discernible pattern or order.