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:

Crowdfunding

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Social Innovation Fund

A program that provides funding to expand effective solutions across communities to solve social problems.

Edward M. Kennedy

A former US Senator known for his significant contributions to healthcare reform, education, and immigration policy.

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A U.S. law enacted in 2009 aimed at expanding national and community service programs to address societal needs and encourage volunteerism.