When There Is Negative Externality in Production

question 19

Multiple Choice

When there is negative externality in production,

• A) Marginal social benefit exceeds marginal private benefit.
• B) Marginal private benefit exceeds marginal social benefit.
• C) Marginal social cost exceeds marginal private cost.
• D) Marginal private cost exceeds marginal social cost.

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Definitions:

Redeeming Qualities

Redeeming qualities are positive characteristics or traits that compensate for or mitigate a person's shortcomings or negative aspects.

Internal Causes

Factors within an individual, such as personal beliefs, values, or emotional states, that motivate behavior or influence how events are perceived.

LMX Perception

LMX Perception refers to how individuals perceive their relationship quality with leaders, based on the Leader-Member Exchange theory which explores different types of leader-member relationships.

Leader

An individual who influences and guides others towards achieving a common goal, often by demonstrating vision, initiative, and direction.