If a Negative Externality Exists, Then There Is a __________

question 166

Multiple Choice

If a negative externality exists, then there is a __________ when society produces the market output instead of the socially optimal output. This exists because the __________ to sellers and third parties are __________ the __________ derived by buyers.

• A)net social benefit; costs; greater than; benefits
• B)net social cost; benefits; less than; costs
• C)net social cost; costs; greater than; benefits
• D)net social cost; costs; less than; benefits
• E)none of the above

Grasp the global nature of social inequality and its consequences.

Understand the role of achievement and ascription in determining social status.

Understand and calculate the return on equity using the debt-to-equity ratio, return on assets, and return on debt.

Comprehend the concept of interest tax shields and identify the beneficiaries.

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Definitions:

Center

In geometry, it refers to the midpoint of a circle or sphere, equidistant from all points on the perimeter or surface.

Standard Form

A way of writing down very large or very small numbers easily. In algebra, it refers to the usual way of writing down equations, focusing on linear equations with the general form Ax + By = C.

Ellipse

A shape representing all the points for which the sum of the distances from two fixed points (the foci) is constant.

Vertex

A point where two or more curves, lines, or edges meet. In the context of geometry, it is often used to refer to the corner point of a polygon or the apex of a cone or pyramid.