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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

your portfolio companies ’ business(passive) caused byexternalities

business activities(passive) are created byexternalities

some companies in a portfolio(passive) created byexternalities

their investment activities(passive) caused bythe externalities

Private economic activitiescreateexternalities

companies ’ operations and products(passive) created byExternalities

oil and gas companies(passive) created bythe " externalities "

Tobacco smoking ... the activitiescauseexternalities

government policiescreateexternalities

certain companies or industries(passive) created bythe externalities

the listed companies annually(passive) caused bythe externalities

social media companies as pollution(passive) created bythe externalities

government actionscreateexternalities

how private market activitiescan causeexternalities

the reason ... so many economic activitiescreateexternalities

the coal industry on both the companies and the consumers(passive) created byexternalities

corporate activities(passive) created bythe externalities

certain activitiescreating“ externalities

agricultural activities(passive) caused byexternalities

polluting activities(passive) caused byexternalities

risky activitiescreatingexternalities

innovative activities(passive) created byexternalities

what amount activitiescreateexternalities

a security system Externality(passive) caused byExternalities

the burning of fossil fuels during commercial activities(passive) caused byexternalities

transport pollution(passive) caused byExternalities

trade policies(passive) created byexternalities

financial market activities(passive) created bythe externalities

business decisionscreateexternalities

national policies(passive) triggered bythe externalities

Region A ’s policiesmay causeexternalities

their cross - border activities(passive) created bythe externalities

all business tax expenditures , other than for activitiescreateexternalities

all business tax expenditure , other than for activitiescreateexternalities

firm actions which only need to be addressed if required to do so by law and regulation(passive) created byexternalities

the economic systemcreateexternalities

our broken system(passive) caused bythe externalities

real estate projectscauseexternalities

their production and use(passive) created bythe externalities

an organization ’s products , activities and services(passive) caused bythe externalities

the market failure problem(passive) caused bythe market failure problem

in a partial market failuregenerally resultin a partial market failure

especially market failure(passive) caused byespecially market failure

to market failure 2leadto market failure 2

market failure ( Layton , 2012can causemarket failure ( Layton , 2012

market failure adam smithdo ... causemarket failure adam smith

to an inefficient allocation of resources or market failuregenerally leadto an inefficient allocation of resources or market failure

from differences MARKET FAILURE -The role of governmentresultfrom differences MARKET FAILURE -The role of government

an inefficient allocation of resources , i.e. market failurecausean inefficient allocation of resources , i.e. market failure

market failure due to either overproduction or underproductioncausemarket failure due to either overproduction or underproduction

market failure , which establishes a basis for government interventioncausemarket failure , which establishes a basis for government intervention

market failure , in which situation the market can not allocate resource optimallywill causemarket failure , in which situation the market can not allocate resource optimally

market failure because the producers and consumers of the externalities do not take them into consideration when making decisionscan causemarket failure because the producers and consumers of the externalities do not take them into consideration when making decisions

to market failure as the private and social welfare implications of undertaking the activity divergemay leadto market failure as the private and social welfare implications of undertaking the activity diverge

market failure can be addressed by indirect taxes subject to the price elasticity of demandcausemarket failure can be addressed by indirect taxes subject to the price elasticity of demand

from a market failure in the Internet of Things industry , in which vendors do not have an incentive to implement reasonable security in the software embedded in devices they produceprimarily resultingfrom a market failure in the Internet of Things industry , in which vendors do not have an incentive to implement reasonable security in the software embedded in devices they produce

market failure if the price mechanism does not take into account the full social costs and social benefits of production and consumptioncan causemarket failure if the price mechanism does not take into account the full social costs and social benefits of production and consumption

market failure as they distort the socially optimum output to society because of a discrepancy between the social costs and benefits and private costs and benefitscausemarket failure as they distort the socially optimum output to society because of a discrepancy between the social costs and benefits and private costs and benefits

to market failure i.e. private decisions which are based on the market fail to give efficient and desirable results in the perspective of general welfaremay ... leadto market failure i.e. private decisions which are based on the market fail to give efficient and desirable results in the perspective of general welfare

in market inefficiencies and how to best overcome themresultin market inefficiencies and how to best overcome them

market failures Externalitycan causemarket failures Externality

the alteration of market failures(passive) are caused bythe alteration of market failures

harm to societycould causeharm to society

the standard solution to market failures(passive) caused bythe standard solution to market failures

to five modes of market failuresleadto five modes of market failures

market distortions(passive) created bymarket distortions

that accrue to societycreatesthat accrue to society

for society as a wholecreatedfor society as a whole

market failures Types of Externalities 1createmarket failures Types of Externalities 1

in a divergence between private and social costs and benefits • costs or benefits of production or consumption experienced by society butresultsin a divergence between private and social costs and benefits • costs or benefits of production or consumption experienced by society but

to market failures in models with financial market imperfections andcan leadto market failures in models with financial market imperfections and

in the misallocation of resources.47would ... resultin the misallocation of resources.47

inefficient allocation of resources by marketscauseinefficient allocation of resources by markets

Market inefficiency(passive) caused byMarket inefficiency

market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities APPLYINGmay preventmarket equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities APPLYING

a divergence between the private and social costs of production social costcreatea divergence between the private and social costs of production social cost

from differences between private and social costs or benefits Externalitiesresultfrom differences between private and social costs or benefits Externalities

the private market equilibriumpreventthe private market equilibrium

the efficiency distortions(passive) caused bythe efficiency distortions

our economy and society from solving some very real and pressing problemspreventour economy and society from solving some very real and pressing problems

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Smart Reasoning:

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