When Negative Externalities Are Present in a Market

question 347

Multiple Choice

When negative externalities are present in a market,

• A)producers will be affected but consumers will not.
• B)producers will supply too much of the product.
• C)demand will be too high.
• D)the market will still maximize total benefits.

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Definitions:

Total Lung Capacity

The maximum amount of air the lungs can hold after an individual takes the deepest breath possible.

Residual Volume

The amount of air left in the lungs after a forced exhalation, which cannot be voluntarily expelled.

Pulmonary Edema

A condition characterized by excess fluid in the lungs, making it difficult to breathe and leading to potential heart failure if not treated.

Pulmonary Embolism

A blockage in one of the pulmonary arteries in the lungs typically caused by blood clots that travel from the legs or other parts of the body.