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:

Uptake Channel

Structures or pathways in cells through which substances are absorbed from the environment into the cell.

Proteins

Large molecules made up of amino acids, essential for the structure, function, and regulation of the body's tissues and organs.

Molecules

Entities consisting of two or more atoms bonded together, representing the smallest fundamental unit of a chemical compound that can take part in a chemical reaction.

Lock-And-Key Model

A model describing the mechanism of enzyme action, where the enzyme and substrate fit together perfectly like a lock and key.