Statement I: External Costs Are Market Failures,but External Benefits Are

question 254

Multiple Choice

Statement I: External costs are market failures,but external benefits are not.
Statement II: The U.S.government provides the legal system under which our free enterprise economy can operate.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Communicate

The process of sharing information, ideas, or feelings between individuals or groups, through various means such as speech, writing, or electronic media.

Broadcast Media

Platforms such as television and radio that disseminate information, news, and entertainment to a wide audience through electromagnetic waves.

Regulations

Rules and guidelines issued by governmental agencies for the purpose of controlling or governing certain practices or activities within society.

Ownership

The legal right to possess, use, and dispose of something, such as property or intellectual property.