A Negative Externality Exists Whenever

question 166

Multiple Choice

A negative externality exists whenever

• A) there are no internal costs.
• B) production of a good creates an external cost.
• C) production of a good creates an external benefit.
• D) production of a good has no social cost.
• E) production of a good has no social benefit.

---

Definitions:

Indirect Benefits

Advantages or gains not directly attributed to a particular action or investment but occurring as a secondary effect.

Stocks Or Bonds

Financial instruments that represent ownership in companies (stocks) or debt obligations (bonds) issued by corporations or governments.

Operates Business

The act of managing and running a company or commercial enterprise.

Collectivism

A cultural value that emphasizes the importance of groups and collective action over individual interests and achievements.