When a Good Generates a Negative Externality in the Market

question 60

Multiple Choice

When a good generates a negative externality in the market:

• A) society's scarce resources are allocated efficiently.
• B) its marginal social cost is greater than its marginal private cost.
• C) the good's price accurately reflects the cost of the externality.
• D) the quantity demanded of the good will be equal to zero.

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Definitions:

Ethnography

A qualitative research method focused on the systematic study of people and cultures from the perspective of the subject.

Phenomenologists

Researchers or philosophers who study the structures of experience and consciousness as a way to understand the essence of phenomena.

Constructs

Constructs are complex theoretical concepts used in various disciplines to understand patterns of behavior, phenomena, or relationships.

Deviance

Behaviors or actions that violate societal norms or expectations, ranging from minor infractions to serious crimes.