When a Negative Externality Exists in a Market, the Cost

question 170

Multiple Choice

When a negative externality exists in a market, the cost to producers

• A)is greater than the cost to society.
• B)will be the same as the cost to society.
• C)will be less than the cost to society.
• D)will differ from the cost to society, regardless of whether an externality is present.

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Definitions:

Zone

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Proximal Development

A concept in psychology referring to the zone of development where a learner can perform a task under adult guidance or with peer collaboration that could not be achieved alone.

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To copy or mimic the actions, behavior, or physical appearance of someone or something else, often as a method of learning or entertainment.

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