In the Case of a Negative Externality

question 41

Multiple Choice

In the case of a negative externality,

• A) marginal external costs are greater than marginal private costs.
• B) marginal external costs are less than marginal private costs.
• C) marginal external benefits are greater than marginal private benefits.
• D) marginal external benefits are equal to marginal private costs.
• E) none of the above

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Definitions:

Fair Labor Standards Act

A United States law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work more than forty hours a week. It also prohibits most employment of minors in "oppressive child labor."

Overtime Payments

Compensation required by law for employees who work longer than the standard workweek, often at a higher pay rate.

Minimum Wage

The lowest legally permissible amount of money that workers can be paid by employers for their labor, determined by law or contract.

Nikefication

A term referring to the adaptation of a brand's marketing strategies across different cultures and communities, often associating with the global expansion practices of companies like Nike.