When Negative Externalities Are Involved, the Market Is Said to

question 135

Multiple Choice

When negative externalities are involved, the market is said to

• A)fail, because it underproduces the good connected with the negative externality.
• B)fail, because it overproduces the good connected with the negative externality.
• C)succeed, because it produces the socially optimal quantity of the good connected with the negative externality.
• D)be "in optimum," because the equilibrium fully adjusts for the negative externality.

Understand the factors contributing to conduct problems in children.

Comprehend the different discipline techniques in parenting and be able to give examples.

Understand Piaget's reasons for changes or choices in adolescents' religious thinking.

Distinguish between Kohlberg's justice perspective and Gilligan's care perspective in moral development.

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Definitions:

Debt-equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholder's equity.

Growth Rate

Growth rate refers to the percentage increase in the size or value of something over a specific period.

Retains Earnings

Profits that a company chooses to re-invest in the business rather than distribute to shareholders.

Capital Intensity Ratio

The capital intensity ratio measures the amount of capital needed per dollar of revenue; a higher ratio indicates that more assets are needed to generate income.