Which of the Following Statements Is Correct

question 105

Multiple Choice

Which of the following statements is correct?

• A)Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced.
• B)Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced.
• C)Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced.
• D)Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced.

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Definitions:

Economic Factor

An element that influences the performance or outcomes of an economy, such as interest rates, inflation, or unemployment rates.

PEST Analysis

A strategic business tool used to identify and analyze the Political, Economic, Social, and Technological factors that may impact a project or venture.

Offshoring Backlash

A negative response or movement against the practice of moving jobs and services to other countries to benefit from lower costs.

Political Factor

Refers to governmental influences that can affect the operation and profitability of businesses, including laws, policies, and political stability.