If There Are Costly Negative Externalities Associated with an Economic

question 1

Multiple Choice

If there are costly negative externalities associated with an economic activity and that activity is carried out until the (private) marginal benefit equals the (private) marginal cost,then ________.

• A) this activity should be subsidized
• B) the social marginal net benefit is positive
• C) the private cost exceeds social costs
• D) too many resources are being allocated to this activity

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Definitions:

Gottman's Seven Principles

A set of guidelines designed by psychologist John Gottman to help couples strengthen and improve their relationships.

Child-Rearing Years

The period in adults' lives when they are most likely to have and be raising children, often considered to be between the early twenties and late forties.

Gottman's Seven Principles

A set of guidelines designed to help couples enhance their relationship, based on the research of John Gottman.

Eye Contact

The act of looking directly into another person's eyes, which can convey a range of emotions, signals, and social cues.