If Jamal Successfully and Completely Internalizes a Negative Externality, It

question 149

Multiple Choice

If Jamal successfully and completely internalizes a negative externality, it follows that

• A)transaction costs are zero.
• B)his marginal private costs are equal to marginal social costs.
• C)information is asymmetric.
• D)information is symmetric.

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Definitions:

Similarity Error

The mistaken evaluation of others based on their resemblance to oneself, often leading to biased decisions or judgments.

Interviewer

A person who asks questions, often for the purposes of research, journalism, or employment selection.

Job Candidate

An individual who applies for, or is being considered for, an employment position.

Pygmalion Effect

The phenomenon where higher expectations lead to an increase in performance.