Which of the following is an example of an undesirable side effect of the operation of the market mechanism?
A)negative externalities
B)comparative advantages
C)abstractions
D)productivity growth

Question

Which of the following is an example of an undesirable side effect of the operation of the market mechanism?
A)negative externalities 
B)comparative advantages 
C)abstractions 
D)productivity growth

Quizplus · Accepted Answer

Negative externalities refer to the unintended costs that affect third parties as a result of economic activity. These can include pollution, congestion, or noise, among others. These side effects arise as a result of the market mechanism and are considered undesirable because they lead to market inefficiencies and suboptimal outcomes from a societal perspective.

Which of the Following Is an Example of an Undesirable