A Negative Externality Related to a Product

question 100

Multiple Choice

A negative externality related to a product

• A) results in underallocation of resources to that product.
• B) results in overallocation of resources to that product.
• C) can be corrected by government subsidies.
• D) can be corrected by lowering the cost of production.
• E) is an example of government failure.

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Definitions:

Ethical Behaviour

Conduct that aligns with recognized moral principles or standards, indicating integrity and fairness in personal and professional actions.

Individualism View

A perspective that emphasizes the importance and value of individual rights, freedoms, and responsibilities over the collective group.

Ethical Behaviour

Conduct that is consistent with what individuals or society consider to be good morals or values.

Long-Term Personal Consequences

The enduring effects or outcomes that actions or decisions can have on an individual’s personal life, career, or overall well-being.