When a Negative Consumption Externality Is Present in a Market

question 34

Multiple Choice

When a negative consumption externality is present in a market, total surplus will be _______ if buyers only consider _______ costs.

• A)higher; private
• B)lower; private
• C)lower; social
• D)unchanged; social

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Definitions:

Ephebophobic

Having an irrational fear of youth or young people.

Normative

Relating to an ideal standard or model, or being based on what is considered to be the normal or correct way of doing something.

Economic

Relating to the system of production, distribution, and consumption of goods and services within a society or geographical area.

Generation X

A demographic cohort following the baby boomers and preceding the Millennials, typically defined as being born from the early-to-mid-1960s to the early 1980s.