If a Negative Externality Were Present in a Market,the Social

question 15

Multiple Choice

If a negative externality were present in a market,the social demand curve would be:

• A)above the private demand curve.
• B)below the private demand curve.
• C)the same as the private demand curve.
• D)Cannot say without more information.

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Definitions:

Cash Outflow

The total amount of money being transferred out of a business, including expenses, investments, and other payments.

Marginal Tax Rate

The rate of tax income of an additional dollar of income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of tax paid on any additional dollar of income.

British Columbia

A province located on the west coast of Canada, known for its natural beauty, including mountains, forests, and coastline.