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

Convert between Celsius and Fahrenheit temperature scales and understand the underlying linear relationship.

Interpret the slope and intercept in the context of a given real-world problem.

Understand and apply the compound interest formula for both accumulation and discounting.

Compute increases in quantities using proportional relationships.

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Definitions:

Normative

Relating to prescriptive or value-based judgments, indicating what should be rather than what is.

Oil Imports

The purchase of foreign-sourced oil for domestic use, reflecting a country's demand for energy resources not available within its own borders.

Normative Statement

An opinion-based statement that reflects values or judgments and cannot be tested or disproven by observation.

Positive

In the context of economic analysis, it often refers to a fact-based approach that attempts to describe how economic systems actually work without making judgments about their desirability.