In a Competitive Market,a Negative Externality Creates a Deadweight Loss

question 113

Multiple Choice

In a competitive market,a negative externality creates a deadweight loss because

• A) the cost of the externality is double counted.
• B) a harm is generated.
• C) price equals social marginal cost.
• D) price equals private marginal cost.

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Definitions:

Collectivist Cultures

Collectivist cultures emphasize the needs and goals of the group as a whole over the needs and desires of each individual.

Mate Selection

The process by which individuals choose partners based on a combination of personal, cultural, social, and biological factors.

Self-effacing Humility

A personality trait characterized by a person's tendency to downplay their own achievements or virtues, often out of a desire to appear humble or unassuming.

Collectivism

A societal norm that prioritizes community objectives above personal ambitions and stresses the significance of unity within social circles.