Negative Externalities

question 26

Multiple Choice

Negative externalities:

• A)create a deadweight loss as do positive externalities.
• B)move the economy closer to the social optimum.
• C)create a deadweight loss and move the equilibrium away from the social optimum.
• D)should be eliminated completely to move to the social optimum.

---

Definitions:

Miscellaneous Expense

Small, often irregular costs that don't fit into a specific category within a company's financial statements.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Parties to a Check

The individuals or entities involved in a check transaction, including the drawer, payee, and drawee.

Maker

The party in a promissory note who is making the promise to pay.