Markets Fail When Externalities Are Present _____

question 142

Multiple Choice

Markets fail when externalities are present _____

• A)because all the costs and benefits of producing goods are reflected in the market prices of the goods.
• B)because some of the costs and benefits of producing goods are not reflected in the market prices of the goods.
• C)because monopoly power arises.
• D)because profits are not maximized.
• E)because there is underprovision of merit goods.

---

Definitions:

Overall Performance

Overall performance captures the total effectiveness, output, or achievement of an individual or organization, considering all efforts and outcomes.

Poorly Performing

Describing something that fails to achieve expected standards or results in a given task or area.

Reggio Emilia

An educational philosophy focused on preschool and primary education, emphasizing hands-on discovery learning that allows children to use all their senses and languages to learn.

Group

A number of individuals who are connected to each other by social relationships.