When Externalities Cause Markets to Be Inefficient

question 150

Multiple Choice

When externalities cause markets to be inefficient,

• A)government action is always needed to solve the problem.
• B)private solutions can be developed to solve the problem.
• C)given enough time, externalities can be solved through normal market adjustments.
• D)there is no way to eliminate the problem of externalities in a market.

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Definitions:

Williams Syndrome

A rare genetic condition characterized by mild to moderate intellectual disability or learning difficulties, unique personality characteristics, distinctive facial features, and heart and blood vessel (cardiovascular) problems.

Symptoms

Observable signs or manifestations of a disease, disorder, or condition that are often reported by the patient and can be used for diagnosis.

Characteristics

Defining traits or features that distinguish an individual, group, or thing from others.

Sporangia

Specialized structures in fungi and plants where spores are produced and stored for reproduction.