The failure of markets to adequately protect the environment can viewed either as a problem of
A)externalities or as a problem of common resources.
B)externalities or as a problem of private goods.
C)the overprovision of public goods or as a problem of the underprovision of private goods.
D)club goods or as a problem that arises when the quantity of excludable goods exceeds the socially-efficient quantity.

Question

Quizplus · Accepted Answer

The failure of markets to adequately protect the environment can be viewed as a problem of externalities, which are costs or benefits that are not reflected in the market price, and/or as a problem of common resources, which are resources that are not owned by anyone and therefore tend to be overused and depleted. Both of these market failures lead to environmental degradation and require government intervention to address the problem.

The Failure of Markets to Adequately Protect the Environment Can