Pollution Is Caused by a Market Failure, in an Industry

question 362

Multiple Choice

Pollution is caused by a market failure, in an industry in which there is

• A) unemployment.
• B) an over-allocation of resources in production.
• C) excess demand.
• D) excessive cost borne by the firm.

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Definitions:

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aimed at fostering economic cooperation and ensuring free movement of goods, services, and people.

Russia

Russia is the largest country in the world by area, spanning Eastern Europe and northern Asia, with a rich history, diverse culture, and significant global political and economic influence.

Yugoslavia

A country that existed in Southeast Europe during most of the 20th century, comprising several Slavic ethnic groups and dissolved in a series of wars in the 1990s.

Trade Balance

The gap between what a country sells to and buys from other countries in terms of goods and services.