Where Negative Externalities Are Present

question 200

Multiple Choice

Where negative externalities are present

• A) the private market produces too much of a good.
• B) the private market produces too little of a good.
• C) the private market produces the efficient quantity of a good.
• D) subsidies to firms are given by the government to increase production.

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Definitions:

Financial Assets

Economic resources or investments owned with the expectation that they will provide future income or will increase in value, such as stocks, bonds, or real estate.

Public Works Administration

Part of the New Deal in the 1930s, a large-scale public works construction agency in the United States that built public buildings, projects, and infrastructure to provide jobs and stimulate the economy.

Public Works Projects

Government-funded infrastructure projects intended for public use and benefit, such as roads, bridges, and schools.

Dams and Highways

Large-scale infrastructure projects that include the construction of barriers across rivers to store water and the building of routes for vehicular traffic across land respectively.