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In Markets with Externalities, the Invisible Hand Concept Does Not

question 64

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In markets with externalities, the invisible hand concept does not work in society's best interest.


Definitions:

Labor-Force Participation Rate

The labor-force participation rate is the percentage of the working-age population that is either employed or actively seeking employment.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing economic data related to labor market activity, working conditions, and price changes.

True Unemployment Rate

A measure of the actual number of unemployed individuals, considering those who have stopped looking for work or are underemployed.

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