Which of the Following Describes How a Negative Externality Affects

question 65

Multiple Choice

Which of the following describes how a negative externality affects a competitive market?

• A)The externality causes a difference between the private cost of production and the social cost.
• B)The externality causes a difference between the private cost of production and the private benefit from consumption.
• C)The externality causes consumer surplus to exceed producer surplus.
• D)The externality causes a difference between the private cost of production and the equilibrium price.

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Definitions:

Threshold

The point at which a particular effect or change occurs, often used in context of quantities or levels.

Intention To Treat

A principle used in clinical trials where all patients including those who drop out or deviate from the protocol are accounted for in the final results.

After-School Program

An organized program that invites children to participate in various activities outside of the standard school hours, often aimed at enhancing learning or providing childcare.

Drop-Out Percentage

The ratio or percentage of individuals who begin an educational or training program but fail to complete it.