If Negative Externalities Exist,then in a Market with No Property

question 17

Multiple Choice

If negative externalities exist,then in a market with no property rights,

• A)MSC = MSB.
• B)MSC < MSB.
• C)MSC > MSB.
• D)MSC = marginal external cost.
• E)MC > MSC.

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Definitions:

Journal Entry

A recording in the accounting books of a business transaction expressed in terms of debits and credits.

Correction Journal Entry

A correction journal entry is used to amend errors or omissions in the financial accounting records of a business.

Ledger Accounts

Records that summarize transactions related to a specific asset, liability, equity, revenue, or expense, forming the backbone of the double-entry bookkeeping system.

Journal Entries

Records of the financial transactions of a business that are entered into its accounting system.