Which of the Following Describes How a Negative Externality Affects

question 65

Multiple Choice

Which of the following describes how a negative externality affects a competitive market?

• A)The externality causes a difference between the private cost of production and the social cost.
• B)The externality causes a difference between the private cost of production and the private benefit from consumption.
• C)The externality causes consumer surplus to exceed producer surplus.
• D)The externality causes a difference between the private cost of production and the equilibrium price.

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Definitions:

Andrew Jackson

The seventh President of the United States (1829-1837), known for his populist approach, founding the Democratic Party, and policies leading to the Trail of Tears.

Age Of Jackson

A period in U.S. history (1829–1837) marked by the presidency of Andrew Jackson, characterized by the expansion of democracy and the rise of the common man's political power.

Property Qualifications

Criteria mandating the ownership of a certain amount of property to enjoy specific rights, such as voting or holding public office, historically used to limit the political participation of certain groups.