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.

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Definitions:

Reasoning Skills

The cognitive abilities that enable a person to think logically, evaluate arguments, and solve problems systematically.

Social Contract Orientation

Involves understanding societal rules and norms as agreements among individuals to ensure social harmony and mutual benefit.

Personal Fable

A belief held by adolescents that they are unique, invulnerable, and can do anything, a form of egocentrism seen in this developmental stage.

Imaginary Audience

A psychological concept where an individual believes that his or her actions are the center of others' attention, common in adolescence.