A Negative Externality Occurs When the Purchase of a Product

question 69

Multiple Choice

A negative externality occurs when the purchase of a product

• A)causes the seller of the product to lose profits.
• B)increases market competition.
• C)causes the government to lose tax revenues.
• D)adversely affects the well-being of an individual outside of the market.
• E)causes a lower market price.

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Definitions:

Integrated Coastal Management

is a process for managing coastal areas to balance environmental, economic, social, cultural, and recreational objectives, all within the limits set by natural dynamics.

Environmental Quality

The state or condition of the environment based on various factors, including pollution levels, cleanliness, and the presence of healthy ecosystems.

Algal Blooms

A rapid increase in the population of algae in water systems, often resulting in water discoloration and depletion of oxygen levels.

Lake Victoria

is one of the largest freshwater lakes in the world, located in East Africa and serving as a crucial resource for millions of people.