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:

Trial Court

A court in which most civil or criminal cases start when they first enter the legal system. The parties present evidence and call witnesses to testify. Trial courts are referred to as courts of common pleas or county courts in state court systems and as district courts in the federal system. Also called court of original jurisdiction and court of first instance.

Final Judgment

The last court ruling in a legal case that resolves the matters in dispute and determines the rights and obligations of the parties involved.

Federal Jurisdiction

The legal authority of the federal government to govern or legislate on certain issues and cases, as distinct from state jurisdiction.

Conditional Jurisdiction

A legal principle where a court has the authority to hear a case based on certain conditions being met.