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ENVR 210 Clicker Questions

ENVR 210 Clicker Questions. Chapter 4 (F & F) – Question Set #1. The term market failure refers to. a market that fails to allocate resources efficiently. an unsuccessful advertising campaign which reduces demand. ruthless competition among firms.

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ENVR 210 Clicker Questions

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  1. ENVR 210Clicker Questions Chapter 4 (F & F) – Question Set #1

  2. The term market failure refers to • a market that fails to allocate resources efficiently. • an unsuccessful advertising campaign which reduces demand. • ruthless competition among firms. • a firm that is forced out of business because of losses. Response Counter

  3. An externality arises when a person engages in an activity that influences the well-being of • buyers in the market for that activity and yet neither pays nor receives any compensation for that effect. • sellers in the market for that activity and yet neither pays nor receives any compensation for that effect. • bystanders in the market for that activity and yet neither pays nor receives any compensation for that effect • Both (a) and (b) are correct. Response Counter

  4. A positive externality arises when a person engages in an activity that has • an adverse effect on a bystander who is not compensated by the person who causes the effect. • an adverse effect on a bystander who is compensated by the person who causes the effect. • a beneficial effect on a bystander who pays the person who causes the effect. • a beneficial effect on a bystander who does not pay the person who causes the effect. Response Counter

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