Economists Generally Agree That ____ Are the Best Way for Governments

question 119

Multiple Choice

Economists generally agree that ____ are the best way for governments to reduce greenhouse gases to address climate change.

• A)military actions
• B)market-based incentives
• C)direct pollution controls
• D)subsidies for offshore oil exploration

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Monopoly

A monopoly exists when a single entity exclusively controls the supply of a particular good or service, often limiting competition.

Externalities

Economic side effects or consequences of commercial activities that affect other parties without being reflected in costs.

Price Mechanism

The process through which prices rise and fall as a result of changes in supply and demand, determining the allocation of resources in a market economy.