A Negative Externality Will Cause a Private Market to Produce

question 476

Multiple Choice

A negative externality will cause a private market to produce

• A)less than is socially desirable.
• B)more than is socially desirable.
• C)exactly the quantity that is socially desirable.
• D)less than the same market would produce in the presence of a positive externality.

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Definitions:

Role Reversal

A technique or exercise where individuals swap roles to gain perspective or empathy by experiencing the world from another's viewpoint.

Belief Systems

Frameworks of principles and values through which individuals perceive and interact with the world.

Past Experiences

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Information given to a person or group about their performance or behavior with the intent to guide future improvements.