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:

Positive Prejudice

Preconceived positive opinions or attitudes held towards a group without sufficient information or based on stereotypes.

Chinese Students

Individuals from China who are pursuing their education abroad or within their country across various educational stages.

Racist Attitudes

Prejudicial beliefs or discriminatory behaviors based on perceived racial differences, often resulting in inequality and social division.

Selective Perception

A psychological phenomenon in which individuals tend to pay attention to information that aligns with their pre-existing beliefs and ignore contradictory information.