When a Negative Externality Exists, the Private Market Produces

question 255

Multiple Choice

When a negative externality exists, the private market produces

• A)more than the economically efficient output level.
• B)less than the economically efficient output level.
• C)products at a low opportunity cost.
• D)products at a high opportunity cost.

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Definitions:

Nonverbal Communication

The transfer of information through body language, facial expressions, gestures, and without using spoken language.

Thumbs-Up

A hand gesture where the thumb is extended upward, commonly used to show approval, agreement, or that everything is good.

Nonverbal Communication

Communication without the use of spoken language, involving gestures, body language, facial expressions, and eye contact.

Appearance

The way that someone or something looks or seems to others.