Which of the Following Is the Best Example of a Supply-Side

question 94

Multiple Choice

Which of the following is the best example of a supply-side market failure?

• A) No one provides street lights in a town because, once the lights are in operation, people don’t have to pay to use them.
• B) A firm keeps its production costs down by dumping its waste in the nearby river, adversely affecting water quality for residents in the area.
• C) Government imposes taxes on the production of a socially desirable good.
• D) Street performers don’t get full payment for the value of their output because people watch and enjoy the shows without paying the artist.

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Definitions:

Slip Off

The act of something becoming detached or moving out of place unintentionally, often resulting in a fall or decrease in position.

Mood-Congruent Memory

The tendency to recall memories that are consistent with one's current mood, which can influence and reinforce the emotional state.

Depressed Individuals

Persons experiencing a mental health condition characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Negative Events

Occurrences that are harmful, undesirable, or lead to negative outcomes for an individual or group.