The Price of Diamonds Is High,in Part Because the Majority

question 16

Multiple Choice

The price of diamonds is high,in part because the majority of the world's diamonds are controlled by a single firm.This is an example of

• A)a market failure caused by an externality.
• B)a market failure caused by market power.
• C)a market failure caused by equality.
• D)There is no market failure in this case.

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Definitions:

MRI

A non-invasive imaging technology that uses a magnetic field and radio waves to create detailed images of the organs and tissues within the body.

Sensory Control Center

The part of the brain responsible for processing and integrating information from the five senses to direct an appropriate response, often associated with the thalamus.

Medulla

The inner region of an organ or tissue, or more specifically, the lower part of the brainstem which controls vital functions such as heart rate and breathing.

Cerebellum

A major structure of the hindbrain that is responsible for fine motor control, balance, coordination, and motor learning.