If Companies Who Internalized an Externality Want to Supply Less

question 24

Multiple Choice

If companies who internalized an externality want to supply less at any given price compared to the original market supply,it must be a:

• A)positive externality.
• B)negative externality.
• C)network externality.
• D)social externality.

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Definitions:

U.S. Net Exports

The value difference between what the United States exports to other countries and what it imports, which can be positive (surplus) or negative (deficit).

Aggregate Demand

The total call for goods and services throughout an economy, calculated at a predetermined price level during a given time period.

U.S. Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and stock exchanges, within the United States.

Bonds

A rephrased definition: Fixed-income investments that represent loans made by an investor to a borrower, typically corporate or governmental.