When a Negative Externality Exists

question 118

Multiple Choice

When a negative externality exists,

• A)external costs are necessarily greater than private costs.
• B)social costs equal private costs.
• C)social costs are less than private costs.
• D)social costs are greater than private costs.

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Definitions:

Balance Of Payments

A statement that summarizes a country's transactions with the rest of the world, including trades, loans, and payments.

Productive Investments

Investments channeled towards the enhancement of production capabilities, technological advancements, or efficiency improvements in an economy.

British Pound

The currency of the United Kingdom, known officially as the pound sterling, and recognized by its symbol £.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's economic growth and balance of trade.