Which of the Following Ways Can Lead Market Failure to Serious

question 17

Multiple Choice

Which of the following ways can lead market failure to serious environmental harm?

• A)Creating abundant markets to create a price for important social goods
• B)Making no distinction between individual decisions and group consequences
• C)Inexistence of externalities in the economic exchange system
• D)Assigning property rights to unowned goods

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its business or to pay debt.

Net Income

The final income of a firm following the deduction of all expenditures, taxes, and interest from the gross revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, revealing profit or loss.