Negative Externalities Occur When One Person's Actions

question 198

Multiple Choice

Negative externalities occur when one person's actions

• A) cause another person to lose money in a stock market transaction.
• B) cause his or her employer to lose business.
• C) reveal his or her preference for foreign-produced goods.
• D) adversely affect the well-being of a bystander who is not party to the action.

Determine the socially optimal level of pollution based on marginal social benefits and costs.

Understand the concept of marginal social cost and how it changes with varying quantities of pollution.

Grasp the idea of marginal social benefit and its role in determining the socially optimal quantity of pollution.

Recognize the existence and significance of externalities in market outcomes, particularly in the presence of pollution.

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Methods, devices, or medications used to prevent pregnancy, allowing individuals or couples to determine the timing and spacing of childbirth.

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