A Negative Externality Exists If

question 134

Multiple Choice

A negative externality exists if

• A)there are price controls in a market.
• B)there are quantity controls in a market.
• C)the marginal social cost of producing a good or service exceeds the private cost.
• D)the marginal private cost of producing a good or service exceeds the social cost.

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Definitions:

Independence

The condition or quality of being self-governing and not under the control of external authority, often relating to nations achieving autonomy from colonial rule or oppressive governments.

1946

The year post-World War II characterized by significant political, economic, and social changes worldwide, including the beginning stages of the Cold War.

U.S. Territory

A region that is under the jurisdiction of the United States but is not a state, often having different legal and political systems.

Political Climate

The general mood, attitudes, and opinions on political matters within a specific geographical area or population at a given time.