A Consequence of a Negative Externality Is That Social Costs

question 40

Multiple Choice

A consequence of a negative externality is that social costs __________ private costs, and the socially optimal level of output __________.

• A)equal; is not equal to social costs or private costs
• B)do not equal; is obtained
• C)do not equal; is not obtained
• D)equal; is obtained
• E)equal; is not obtained

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Definitions:

Express Warranty

An express warranty is a seller's promise or guarantee that a product will meet a specified level of quality and reliability.

Puffing

Exaggerated or superlative comments or opinions made by sellers regarding the quality or desirability of their goods, not considered legally binding promises.

UCC

A complete legislative framework, the Uniform Commercial Code, oversees all commercial dealings within the United States.

Negotiate

The process of discussing terms to reach a mutual agreement in transactions, contracts, or disputes.