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:

Endorsing

Endorsing involves signing the back of a check or other negotiable instruments to make it payable to someone other than the original payee or to authorize its use.

Guarantees Payment

An assurance, typically from a third party, that payment will be made for goods or services received.

Blank Endorsement

A signature without any restrictions or instructions, allowing any holder of the document to execute a transaction.

Endorsed

The act of signing the back of a negotiable instrument, such as a check, thus transferring rights or title to another party.