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:

Barter System

The barter system is a method of exchange where goods or services are traded directly for other goods or services without the use of currency.

Services

Intangible products such as banking, cleaning, and consulting, which are consumed at the time they are produced.

Specialization Of Labor

A process where individuals or groups focus on performing specific tasks or roles to increase efficiency and output.

Relatives

Individuals who are connected by blood or marriage and may have legal obligations or strong emotional ties to each other.