When a Good Commodity Is Driven Out of the Market

question 45

Multiple Choice

When a good commodity is driven out of the market by a bad commodity it is called:

• A)moral hazard.
• B)adverse selection.
• C)positive externality.
• D)negative externality.
• E)tragedy of commons.

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Definitions:

Curved Arrow Formalism

A notation technique in chemistry representing the movement of electrons during reaction mechanisms.

Electron Pairs

Pairs of electrons occupying the same orbital but having opposite spins; important in bond formation and molecular structure.

Bronsted-Lowry Base

A substance that can accept a proton (H+) from another substance, according to the Bronsted-Lowry acid-base theory.

Lewis Base

A Lewis base is a substance that can donate a pair of electrons to form a covalent bond in a chemical reaction.