Th4.4: ^^ Externalities

Question 1

There are a number of costs placed on firms, individuals and the government that…

Answer 1

the financial market does not pay

Question 2

What is an example of this?

Answer 2

the cost to the taxpayer of bailing out the banks after the 2007/8 financial crisis

Question 3

What else shows some external costs?

Answer 3

moral hazard