When a Negative Externality Is NOT Internalized,then the Equilibrium Price

question 21

Multiple Choice

When a negative externality is NOT internalized,then the equilibrium price of the good produced is too ________ and the equilibrium quantity produced is too ________.

• A) high; high
• B) low; low
• C) low; high
• D) high; low
• E) expensive; inefficient

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Definitions:

Hypertension Prevalence

The proportion of a population that has high blood pressure at a given time.

Racial Group

A group of people identified or classified together based on common genetic lineage, which often relates to physical characteristics and sometimes cultural, linguistic, or historical factors.

Hepatojugular Reflux

An increase in jugular vein pressure observable when pressure is applied to the liver, indicative of congestive heart failure or other cardiac issues.

Cardiomyopathy

A group of diseases that affect the heart muscle itself, potentially leading to heart failure and other complications.