Negative Externalities Lead Markets to Produce a Smaller Quantity of a Good

question 60

True/False

Negative externalities lead markets to produce a smaller quantity of a good than is socially desirable, while positive externalities lead markets to produce a larger quantity of a good than is socially desirable.

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Definitions:

Low-Throughput Economy

An economic system focused on minimizing resource use and waste production.

Barrel of Oil

A unit of measure for crude oil and other petroleum products, equivalent to 42 US gallons.

Environmental Surprise

Unanticipated or unforeseen events or changes in the environment that can drastically impact ecosystems and human societies.

pH

A measure of how acidic or basic a solution is, on a scale of 0 to 14, where 7 is neutral, values less than 7 are acidic, and values greater than 7 are basic.