Which of the Following Is the Government Most Likely to Discourage

question 52

Multiple Choice

Which of the following is the government most likely to discourage because of the existence of externalities?

• A) All goods and services produced by monopolies.
• B) Cars that create an excessive amount of exhaust fumes.
• C) Thermal pollution from a power plant that improves fishing downstream.

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Definitions:

AUM

Assets Under Management, representing the total market value of the investments a financial institution manages on behalf of clients.

Hedge Fund Fees

Charges associated with investing in a hedge fund, often including a management fee and a performance fee.

Equity Market

A financial market where shares of companies are issued and traded, also known as the stock market.

World Equity Market

A global marketplace where shares of companies from different countries are bought and sold.