When a Negative Externality Is Present in a Market,government

question 106

Multiple Choice

When a negative externality is present in a market,government

• A) must regulate it.
• B) should regulate it if the public supports regulation.
• C) should never regulate it.
• D) needs only regulate it if loss of life is involved.
• E) should regulate it if the benefit of regulation exceeds the cost.

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Definitions:

Dividends Received

Dividends Received refers to the payments a shareholder gets from a corporation or a fund as a return on investment.

Related Expense

An expense that is directly connected to a specific business activity or department within a company.

Equity in Subsidiary Earnings

The share of earnings attributed to the parent company from its ownership interest in a subsidiary.