Suppose That a Steel Factory Emits a Certain Amount of Air

question 299

Multiple Choice

Suppose that a steel factory emits a certain amount of air pollution, which constitutes a negative externality. If the market does not internalize the externality,

• A)the supply curve would adequately reflect the marginal social cost of production.
• B)consumers will be required to pay a higher price for steel than they would have if the externality were internalized.
• C)the market equilibrium quantity will not be the socially optimal quantity.
• D)producers will produce less steel than they otherwise would if the externality were internalized.

---

Definitions:

Case-Study Evidence

consists of detailed examinations of individuals or groups from a real-world context, often used in psychology and sociology to explore complex issues.

Operational Definitions

Specific explanations of abstract concepts or variables in terms of the procedures or operations by which they are measured or manipulated.

Causal Relationships

A connection between two events where one event is understood to be a result of the occurrence of the other event.

Employment Success

The achievement of career objectives, personal satisfaction, and positive contributions to an organization or society through one's work.