What Is the Effect of a Negative Externality

question 102

Multiple Choice

What is the effect of a negative externality

• A)It has an adverse impact on a bystander.
• B)It causes the product in a market to be underproduced.
• C)It has an adverse impact on market participants.
• D)When it is present in a market, the good or service is undesirable for society.

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Definitions:

Due Process of Law

The legal requirement that the state must respect all legal rights owed to a person, ensuring fairness in legal proceedings.

Writ of Habeas Corpus

A legal order requiring a person under arrest to be brought before a judge or into court, ensuring protection against illegal detention.

Legal Warrant

A legal document issued by a court or magisterial authority permitting law enforcement to perform an action that would otherwise be prohibited, such as searching a premise.

Civil Law

A legal system that deals with disputes between private parties, encompassing laws such as contracts, property, and family law.