When a Negative Externality Is Present in a Market,the Quantity

question 37

Multiple Choice

When a negative externality is present in a market,the quantity consumed:

• A) is always less than the socially optimal quantity.
• B) is more than the socially optimal quantity.
• C) is the same as the socially optimal quantity.
• D) is often less than the socially optimal quantity.

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Definitions:

T-Statistic

Re-defined: A value calculated from sample data during a t-test, used to assess the significance of the difference between two sample means.

α

Represents the level of significance in hypothesis testing, typically set at 0.05 or 5%.

P > .05

A statistical expression indicating that the probability of the observed data, or something more extreme, if the null hypothesis is true, is greater than 5%.

Null Hypothesis

The default assumption in statistical hypothesis testing that there is no significant effect or difference, intended to be challenged by the alternative hypothesis.