The Effect of a Negative Externality Is Similar to A

question 18

Multiple Choice

The effect of a negative externality is similar to a:

• A)supply curve (marginal social cost) shifting to the left.
• B)supply curve (marginal social benefit) shifting to the right.
• C)demand curve (marginal social cost) shifting to the left.
• D)demand curve (marginal social benefit) shifting to the right.

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Definitions:

Negligence

Failure to take proper care in doing something, leading to damage or injury to another.

Injurious Falsehood

False statements about a firm, its products or business practices intended to dissuade others from doing business with the firm.

Slander of Goods

The act of making false, damaging statements about another's products or services, negatively affecting their reputation.

Business Enterprise

A business enterprise refers to an organization engaged in commercial, industrial, or professional activities, aiming to generate profits through providing goods or services.