If a Negative Externality Exists, Then There Is a __________

question 166

Multiple Choice

If a negative externality exists, then there is a __________ when society produces the market output instead of the socially optimal output. This exists because the __________ to sellers and third parties are __________ the __________ derived by buyers.

• A)net social benefit; costs; greater than; benefits
• B)net social cost; benefits; less than; costs
• C)net social cost; costs; greater than; benefits
• D)net social cost; costs; less than; benefits
• E)none of the above

Develop skills in analyzing the implications of variances for managerial decision-making.

Understand the process of recognizing variances at different stages of production.

Identify the factors contributing to favorable or unfavorable variances.

Learn how to compute variances using standard cost and actual data.

---

Definitions:

Gross Domestic Product

The total value of all goods and services produced over a specific time period within a country's borders.

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace.

Final Goods

Products that have completed the manufacturing process and are ready for use by consumers or for investment by businesses without further transformation.

Government Spending

Expenditures by government bodies on goods and services, including transfer payments and public infrastructure investments.