When a Negative Externality Exists, the Private Market Produces

question 255

Multiple Choice

When a negative externality exists, the private market produces

• A)more than the economically efficient output level.
• B)less than the economically efficient output level.
• C)products at a low opportunity cost.
• D)products at a high opportunity cost.

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Definitions:

Cultural Value

The shared beliefs, norms, and practices that shape the social behaviors and expectations within a specific group or society.

Individualism

A social philosophy advocating for individual autonomy over the control of the collective or government.

Social Framework

The structure of societal norms, values, and institutions that shapes the interactions and behaviors of groups and individuals within a community.

Environmental Sources

Refers to the origins of natural resources and conditions in the environment that impact ecosystems and human health.