A Negative Externality Exists When

question 147

Multiple Choice

A negative externality exists when

• A)marginal social costs are less than marginal private costs.
• B)marginal social costs are greater than marginal private costs.
• C)marginal social benefits are less than marginal private benefits.
• D)marginal social benefits are greater than marginal private benefits.

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Definitions:

Johnson Amendment

A U.S. law that prohibits all 501(c)(3) non-profit organizations from endorsing or opposing political candidates.

Repealing

The action of revoking or withdrawing a law, tax, duty, or regulation.

Entrepreneurship

The process of designing, launching, and running a new business or enterprise, often characterized by innovation, risk-taking, and the pursuit of profit.

Unpredictable

Something or someone that is impossible to foresee or predict due to a high degree of uncertainty or variability.