In a Competitive Market,a Negative Externality Creates a Deadweight Loss

question 113

Multiple Choice

In a competitive market,a negative externality creates a deadweight loss because

• A) the cost of the externality is double counted.
• B) a harm is generated.
• C) price equals social marginal cost.
• D) price equals private marginal cost.

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Definitions:

Dismantle

The process of taking apart or disassembling a structure or system, either physically or figuratively.

Second Shift

Refers to the phenomenon where individuals, often women, perform unpaid labor at home after completing their paid workday, highlighting the dual burden of employment and domestic responsibilities.

Domestic Labour

Work performed within the home, such as cooking, cleaning, and childcare, often undervalued in economic terms and traditionally performed by women.

Social Reproduction

The process by which societies transmit cultural, social, and economic systems across generations, maintaining continuity and norms.