A Negative Externality Results in

question 117

Multiple Choice

A negative externality results in

• A)underproduction.
• B)zero production.
• C)overproduction.
• D)efficient production.
• E)zero deadweight loss.

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Definitions:

Social Resources

are assets available to individuals or communities, such as knowledge, networks, and social status, that can be mobilized to achieve desired outcomes.

Intention

A mental state that represents a commitment to carrying out an action or actions in the future.

Neoclassical Economics

A branch of economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.

Utilitarianism

A philosophical theory focusing on outcomes and consequences, suggesting the best action is the one that maximizes utility, usually defined as maximizing happiness and reducing suffering.