A plausible example of market failure due to an externality is
A) a farmer with an apple orchard who also keeps bees.
B) the cost of building new highways outside of major cities.
C) the high salaries enjoyed by professional athletes.
D) the despoiling of rivers and lakes by nitrogen run- off from agricultural fertilizers.
E) the line- ups at the theatre when a good movie is playing.
Correct Answer:
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Q15: The "informal defence" of free markets includes
Q16: All Canadian provincial governments have legislated minimum
Q17: FIGURE 16- 1 Q18: Which of the following best describes the Q19: In economics,the term "public good" refers to Q21: When prices are determined in a free- Q22: The diagram below shows the marginal benefit Q23: Private markets will always provide too few Q24: FIGURE 16- 1 Q25: Economists use the term "market failure" to![]()
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