A Species of Snakes Became Extinct Due to Pollution in a River

question 45

Multiple Choice

A species of snakes became extinct due to pollution in a river where the snakes once lived.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.

---

Definitions:

Transcontinental Railroads

Railroad lines that cross an entire continent, connecting different coasts or borders and significantly enhancing transportation and economic growth.

Federal Government Spending

The total amount of money the federal government expends on various services, programs, and debt interest.

Recessions

Periods of economic decline when GDP falls consecutively for two or more quarters, typically characterized by reduced spending and increased unemployment.

Stagflation

An economic situation characterized by prolonged high inflation combined with high unemployment and stagnant demand in a country's economy.