A Negative Externality Generates

question 36

Multiple Choice

A negative externality generates

• A) a social cost curve that is above the supply curve (private cost curve) for a good.
• B) a value to a consumer that is less than the total consumer surplus
• C) a social cost curve that is below the supply curve (private cost curve) for a good.
• D) a social value curve that is above the demand curve (private value curve) for a good.

---

Definitions:

Portfolio Performance

The analysis and evaluation of the returns generated by a collection of investments held by an individual or an institution.

Observation Period

A specific timeframe during which data is collected or observations are made.

Variance of Stock Returns

A measure of the spread between numbers in a data set, showing the degree of variation from the mean of stock returns.

High Variance

Referring to investments or processes that exhibit a wide dispersion of possible outcomes or returns, often indicating higher risk.