Suppose the Production of a Good Results in Negative Externalities

question 121

Multiple Choice

Suppose the production of a good results in negative externalities. If all costs are taken into account, then

• A)output will occur at the socially optimal level.
• B)the price of the product will be higher than if all costs are not taken into account.
• C)more output will be produced than if all costs are not taken into account.
• D)a and b
• E)a, b, and c

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Definitions:

Magma

The molten or semi-molten natural material from which all igneous rocks are derived, located beneath the Earth's surface.

Welded Texture

A texture found in volcanic rocks, formed when hot volcanic ash and debris fuse together under pressure.

Volcanic Breccia Texture

A coarse-grained volcanic rock composed of angular to subangular fragments bonded together by a fine-grained matrix, typically formed from explosive volcanic eruptions.

Igneous Rock

is a type of rock formed through the cooling and solidification of magma or lava.