When Firms Do Not Have to Pay the True Social

question 14

Multiple Choice

When firms do not have to pay the true social costs for resources

• A) they have an incentive to reduce pollution voluntarily with their excess profits.
• B) the net social benefits are increased.
• C) they will use too little of them, from society's perspective.
• D) no external diseconomies are present.
• E) the public is induced to buy more of that output than it would otherwise.

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Definitions:

Evaluation Tasks

Activities designed to assess the performance, quality, or suitability of someone or something through careful consideration and analysis.

Unmarried Cohabiting Parents

Couples who live together and have a child or children without being legally married.

Stable

Something that is not likely to change, give way, or falter; enduring and consistent.

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A form of abuse involving non-consensual sexual activity or coercion.