When a Negative Externality Is Internalized,efficiency Increases by Shifting The

question 132

Multiple Choice

When a negative externality is internalized,efficiency increases by shifting the:

• A)external cost from those not involved in the market to those involved.
• B)external cost from those involved in the market to those not involved.
• C)private cost from those not involved in the market to those involved.
• D)social cost from those not involved in the market to those involved.

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Definitions:

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior, focusing on the morality of actions, duties, rights, and the goodness of characters.

Causality

The relationship between cause and effect, where one event (the cause) leads to the outcome of another event (the effect).

Concrete Level

Describes a stage of analysis or understanding that deals with tangible, definite, and specific instances as opposed to abstract or theoretical concepts.

Abstract Level

a degree of thinking that involves complex, non-concrete concepts that do not rely on sensory experience for understanding.