Which of the Following Is Not a Requirement for Markets

question 18

Multiple Choice

Which of the following is not a requirement for markets to be efficient?

• A) perfect information
• B) rational behavior by all agents
• C) complete markets
• D) competition in production
• E) the absence of transaction costs

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Definitions:

National Pollutant

A substance that contaminates the environment on a national scale, often regulated by government agencies due to its harmful effects.

Discharge Permits

Authorizations issued by environmental regulatory agencies allowing the release of specific pollutants into the environment, under defined conditions.

EPA

The Environmental Protection Agency is a U.S. federal agency tasked with protecting human health and the environment through regulations and enforcement.

Montreal Protocol

An international treaty designed to protect the ozone layer by phasing out the production of numerous substances responsible for ozone depletion.