A Negative Externality Is a Situation in Which

question 273

Multiple Choice

A negative externality is a situation in which

• A) there is a spillover of benefits.
• B) a cost associated with an economic activity is borne by a third party.
• C) a firm is paying in excess of the total costs of producing a good.
• D) none of the above.

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Definitions:

Formal Forms

Structured, officially recognized or institutionalized patterns, shapes, or arrangements that adhere to established rules or standards.

Moral Panic

A widespread feeling of fear, often irrational, that some evil threatens the well-being of society, typically provoked by media coverage and leading to public calls for action.

Death Penalty

A legal punishment where a person is put to death by the state as a consequence for a crime deemed as particularly severe.

Gender Equality

The state in which access to rights or opportunities is unaffected by gender, allowing individuals of all genders to participate and benefit equally in all aspects of society.