Consider a Market with a Negative Externality

question 64

Multiple Choice

Consider a market with a negative externality.The market will tend to ________ the good because the market participants tend to ignore the ________ of their decision.

• A) overproduce; external benefit
• B) underproduce; external benefit
• C) overproduce; external cost
• D) underproduce; external cost
• E) overproduce; internal benefit

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Definitions:

Encourages Audience

Refers to techniques or methodologies aimed at engaging and motivating an audience to participate or take interest.

Effective Communication

Effective communication occurs when information is shared accurately and received as intended, promoting understanding and action.

Accepted

Recognized as valid, appropriate, or suitable; or the act of agreeing to receive or undertake something offered.

Professionalism

The exhibition of behaviors and attitudes that are considered appropriate and effective in a professional setting.