A Market with a Negative Externality

question 78

Multiple Choice

A market with a negative externality

• A)will be regulated by the government
• B)is an example of a natural monopoly
• C)will be Pareto efficient,as long as bargaining costs are high enough
• D)will produce less than the efficient quantity,thereby creating a welfare loss
• E)will produce more than the efficient quantity,thereby creating a welfare loss

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Definitions:

Denisovans

An extinct species or subspecies of archaic humans known from DNA evidence and a few archaeological remains, suggesting they once lived in Asia.

Bipedalism

The capability of bipedal locomotion, specifically walking on two legs, which is a trait of humans and their forebears.

Robust Australopithecines

Extinct hominids known for their sturdy skeletal structures, part of the early human lineage that lived in Africa.

Gracile Australopithecines

A subgroup of the Australopithecus genus characterized by their more slender and lightly built frame compared to their robust cousins.