When Do Negative Externalities Occur

question 206

Multiple Choice

When do negative externalities occur

• A)when one person's actions cause another person to lose money in a stock market transaction
• B)when one person's actions cause his or her employer to lose business
• C)when one person's actions reveal his or her preference for foreign-produced goods
• D)when one person's actions adversely affect the well-being of a bystander

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Definitions:

Personal Income Tax

A tax levied on an individual's income, including wages, salaries, and other earnings, by the government.

Benefits-Received Principle

A theory in tax policy stating that taxes should be levied in accordance with the level of government services and benefits an individual or entity receives.

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Income Taxes

Taxes levied by the government on the income of individuals or organizations.