When a Negative Externality Is Present in a Market, the Government

question 20

Multiple Choice

When a negative externality is present in a market, the government should:

• A)always intervene.
• B)intervene it if the public supports doing so.
• C)never intervene.
• D)intervene if the benefit of doing so exceeds the cost.

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Definitions:

Destroyed

When something is damaged beyond repair or no longer exists in its original form.

Collect

To gather or assemble multiple items or amounts together; also refers to the act of receiving payment.

Insurance Policy

A contract between an insurer and the insured, detailing the terms under which the insurer agrees to provide financial protection against specified risks.

Vandals

Vandals are individuals who deliberately destroy or damage property, often public or another's, without permission or legal right.