What Is a Negative Externality

question 91

Multiple Choice

What is a negative externality?

• A) a situation in which there are positive side effects of an action that benefit society
• B) a situation in which the agency responsible for regulating an industry is too sympathetic to the group it is supposed to regulate
• C) a situation in which the country is spending more every year than it is taking in from revenue
• D) a situation in which the total imports and foreign investment in America is greater than the total of exports and American investment abroad
• E) a situation in which a firm produces more of an unwanted good than is socially desirable

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Definitions:

Biodiversity

Refers to the enormous variety of plant and animal species inhabiting Earth.

Evolution

Is the process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Technological Determinism

The theory that technology development drives societal change, with new technologies shaping economic, social, and cultural dynamics.

Nikolai Kondratiev

A Russian economist best known for proposing the theory of long economic cycles, or "Kondratiev waves," which suggest that capitalist economies experience long-term cycles of boom and bust.