To Maximize Social Welfare in the Presence of a Negative

question 23

Multiple Choice

To maximize social welfare in the presence of a negative externality, marginal ____ must equal marginal ____.

• A) social cost; private cost
• B) private cost; social cost
• C) social cost; social benefit
• D) private cost; social benefit

---

Definitions:

Normal

An expected condition or state, often considered to be the standard or average.

Complicated

Involving many different and confusing aspects; not simple or easy to resolve.

Worden's Mourning

A theory outlining four tasks that people move through in the grieving process, aimed at helping individuals cope with loss.

Widower

A man who has lost his spouse through death and has not remarried.