Suppose That a Negative Externality Is Created by the Production

question 350

Multiple Choice

Suppose that a negative externality is created by the production of good X. Which of the following statements is correct?

• A)The social cost of producing good X includes the private cost plus the cost to bystanders of the externality.
• B)The increased social cost can be graphed as a decrease in demand.
• C)The market equilibrium quantity will be the socially optimal quantity as long as the government does not interfere.
• D)Both a and b are correct.

---

Definitions:

Physician Practice

The clinical and administrative operations conducted by doctors, often within clinics or hospitals, to provide patient care.

AAMA Certification

A credential awarded by the American Association of Medical Assistants to medical assistants who meet certain criteria and pass an examination.

Areas of Practice

Specific fields or specializations within a profession, particularly medicine or law, focusing on a defined set of skills or knowledge.

Professional Trait

Characteristics or qualities deemed beneficial or essential in a specific profession, often relating to ethics, competence, and demeanor.