The Existence of a Negative Externality Will Result In

question 19

Multiple Choice

The existence of a negative externality will result in:

• A)a less than optimal level of production.
• B)a greater than optimal level of production.
• C)prices that are artificially high.
• D)elimination of deadweight loss.

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Definitions:

Wealth

The abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.

Interest Rate

The proportion, typically expressed as a percentage, that is charged for the use of borrowed money or paid on deposited funds.

Processing Fee

A charge assessed for the processing of a transaction or service, often seen in financial services, applications, and loans.

Bonus

An additional amount of money given to an employee on top of their regular salary, often as a reward for good performance or as part of a special agreement.