The failure of markets to adequately protect the environment can be 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

Market failures related to environmental protection often stem from externalities, where the full costs or benefits of actions are not borne by those who undertake them, and common resources, which are non-excludable but rivalrous, leading to overuse and depletion (e.g., fisheries, clean air).

The Failure of Markets to Adequately Protect the Environment Can