Suppose That External Costs Are Not Fully Reflected in the Market

question 81

Multiple Choice

Suppose that external costs are not fully reflected in the market price of a good.This is an indication of market:

• A) failure.
• B) equilibrium.
• C) efficiency.
• D) optimality.

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Definitions:

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Detailed technical drawings or plans for designing and constructing machines or mechanical systems.

Samuel Slater

Known as the "Father of the American Industrial Revolution," he brought British textile technology to America, establishing the country's first successful water-powered cotton mill.

Spinning Jenny

An early multi-spindle spinning frame invented in 1764, which significantly increased the amount of yarn produced and contributed to the Industrial Revolution.

Manifest Destiny

A 19th-century doctrine or belief that the expansion of the US throughout the American continents was both justified and inevitable.