When a Negative Externality Is Present in a Market,when a Tax

question 92

Multiple Choice

When a negative externality is present in a market,when a tax is imposed,it is:

• A) inefficient, because the net benefit of buying another unit is zero for all market participants.
• B) efficient, because the net benefit of buying another unit is zero for all market participants.
• C) efficient, because the government mandates the efficient quantity without regard for net benefits.
• D) inefficient, because the government mandates the efficient quantity without regard for net benefits.

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Definitions:

Reliability

Refers to the consistency and dependability of a measurement tool or test over time.

Nonverbal behaviors

Actions or gestures, excluding spoken words, through which people communicate emotions and intentions, like facial expressions or body posture.

Systematic observation

A method of research involving careful and consistent observation of phenomena according to a plan or system.

Child-rearing

The process of supporting and promoting the emotional, physical, social, and intellectual development of a child from infancy to adulthood.