When a Negative Externality Exists in a Market, the Cost

question 170

Multiple Choice

When a negative externality exists in a market, the cost to producers

• A)is greater than the cost to society.
• B)will be the same as the cost to society.
• C)will be less than the cost to society.
• D)will differ from the cost to society, regardless of whether an externality is present.

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Definitions:

Carotenoid

Pigments found in plants and some microorganisms, responsible for vibrant yellow, red, and orange colors and playing a role in photosynthesis.

Insoluble

A characteristic of substances that cannot dissolve in a specified solvent, such as water.

Double Bonds

Chemical bonds between two atoms involving four bonding electrons instead of the usual two, making compounds more reactive.

Polysaccharide

A carbohydrate consisting of many monosaccharide subunits (e.g., starch, glycogen, and cellulose).