If a Negative Externality Exists, Then There Is a __________

question 51

Multiple Choice

If a negative externality exists, then there is a __________ when society produces the market output instead of the socially optimal output. This exists because the __________ to sellers and third parties are __________ the __________ derived by buyers.

• A)net social benefit; costs; greater than; benefits
• B)net social cost; benefits; less than; costs
• C)net social cost; costs; greater than; benefits
• D)net social cost; costs; less than; benefits

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Definitions:

Reasoning Level

The capacity or ability of an individual to engage in logical thinking and problem-solving.

Kohlberg's Stages

A theory proposed by Lawrence Kohlberg, outlining the stages of moral development individuals typically go through.

Girls

Female children and young adolescents, typically under the age of 18.

Bullies

Individuals who use power, such as physical strength or social influence, to intimidate or harm others, often repeatedly over time.