If Negative Externalities Exist, Then in a Market with No

question 61

Multiple Choice

If negative externalities exist, then in a market with no property rights,

• A) MSC = MSB.
• B) MSC < MSB.
• C) MSC > MSB.
• D) MSC = marginal external cost.
• E) MC > MSC.

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Definitions:

Absolute Spirit

A concept associated with Hegel that represents the ultimate reality and truth, unifying the subjective, objective, and absolute dimensions of being.

Hegel

A German philosopher of the late Enlightenment period, known for his dialectical method and the concept of the absolute spirit.

Ontological Argument

An argument for the existence of God based on the premise that God, being defined as the greatest possible being, must exist in reality because existence would make God greater.

Anselm

A medieval theologian and philosopher known for his argument for the existence of God through the concept of "that than which nothing greater can be thought."