Which of the Following Is a Cost of Internalizing a Negative

question 108

Multiple Choice

Which of the following is a cost of internalizing a negative externality?

• A) Less output is produced.
• B) External costs are larger.
• C) The level of pollution rises.
• D) Taxes must increase to cover the external cost.
• E) The government must pay firms to encourage them to change production techniques.

---

Definitions:

Ethnic Market

Ethnic Market refers to a market segment composed of individuals sharing a common cultural or racial background, often targeted with tailored products or marketing messages.

High-Context Culture

A communication style in societies where people have close connections over a long period and tend to infer meanings beyond the spoken word.

Visible Minorities

Individuals who are non-Caucasian in race or non-white in color and are a minority in a particular social or cultural context.

Subcultural Groups

Groups that exhibit cultural patterns that set them apart from the broader society, often having their own distinct values, norms, and lifestyle preferences.