ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An increase in the stock market.
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Pollution that gets into our drinking water due to run-off from a nearby factory.
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Better fertilizers that make giant pumpkins.
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bees pollinating your flowers because you live nearby a bee keeper who makes honey
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Detailed explanation-1: -In the case of pollution-the traditional example of a negative externality-a polluter makes decisions based only on the direct cost of and profit opportunity from production and does not consider the indirect costs to those harmed by the pollution.
Detailed explanation-2: -The negative externalities extend to human health, the environment, and the broader economy. Though a precise comparison is difficult, the report suggests that the damage to health and ecosystems from excessive fertilizer use may outweigh the benefits of higher yields.
Detailed explanation-3: -Air pollution is essentially a negative externality: it imposes external costs to people who are external to the transaction of a polluting product.
Detailed explanation-4: -Air pollution production. Water pollution production. Farm production. Garden production. Traffic congestion consumption. Noise consumption. Secondhand smoke consumption. Strobe light consumption. 08-Oct-2021