When a Negative Externality Exists in a Market,total Surplus

question 41

Multiple Choice

When a negative externality exists in a market,total surplus:

• A) is decreased by deadweight loss compared to that same market without a negative externality.
• B) is the same as a market without a negative externality.
• C) is increased by deadweight gain compared to that same market without a negative externality.
• D) is the same but re-distributed differently than if that same market did not have a negative externality.

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Definitions:

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The act of convincing others to change their attitudes, beliefs, or actions regarding an issue through argument, appeal, or rational discussion.

Own Interests

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The use of social media platforms and websites to promote a product or service, leveraging the networks and engagement these platforms offer.

Enthusiastic Fans

Individuals who are highly passionate and supportive of a particular interest, such as a sports team or entertainment franchise.