Which of the Following Statements About Private and Social Costs

question 9

Multiple Choice

Which of the following statements about private and social costs is TRUE in the presence of negative externalities created by pollution?

• A)Competitive market produces excessive pollution.
• B)The optimal amount of pollution is zero.
• C)Social costs exclude externalities.
• D)Social producer surplus exceeds private producer surplus.

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Definitions:

Hypothesis Test

A statistical method used to determine the probability that a hypothesis regarding a specific characteristic of a population is true.

P-value

The p-value is a measure in statistics that helps determine the significance of results, indicating the probability of observing the given results, or more extreme, by chance if a null hypothesis were true.

Democratic Candidate

An individual running for political office who is a member of or endorsed by the Democratic Party.

Surgical Site Infections

Infections that occur after surgery in the part of the body where the surgery took place.