Since Externalities Tend to Keep Markets from Reaching a Socially

question 395

Multiple Choice

Since externalities tend to keep markets from reaching a socially optimal equilibrium, government action

• A)is always needed because private solutions can never be attained.
• B)is needed when private solutions fail to arise.
• C)will be needed only to correct for positive externalities.
• D)will be needed only to correct for negative externalities.

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Definitions:

Intrude

To encroach or interrupt uninvitedly or undesirably, often in the context of privacy or personal space.

Institutions and Systems

The structured and established social entities, organizations, and mechanisms that influence or govern societal behavior and interactions.

Practitioners

Individuals who practice a profession, especially one that involves the provision of services, such as in healthcare, law, or education.

Unfair Practices

Actions or policies that are unjust, discriminatory, or lacking in equity, often disadvantaging certain groups or individuals.