Which of the Following Is True If a Negative Externality

question 17

Multiple Choice

Which of the following is true if a negative externality is associated with the sale of gasoline?

• A)Third parties other than the buyers and sellers of gasoline receive benefits.
• B)Third parties other than the buyers and sellers of gasoline bear costs.
• C)The marginal social cost of gasoline exceeds its marginal private cost.
• D)Both (b) and (c) are correct.

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Definitions:

Torque Converter Stator

Torque Converter Stator is a key component of a torque converter in automatic transmissions, helping to improve efficiency by directing the flow of fluid in a way that multiplies torque.

Transmission Oil Level

The amount of oil present in the transmission system, critical for lubrication, cooling, and smooth operation, requiring regular checks and maintenance.

Aerates

introduces air into a fluid, often to improve the fluid's properties or to facilitate certain chemical processes.

Retarder Operation

The process by which a vehicle's retarder helps in slowing down the vehicle, typically by using mechanisms that create resistance or drag on the drivetrain.