When Negative Externalities Are Present in a Market

question 214

Multiple Choice

When negative externalities are present in a market

• A)private costs will be greater than social costs.
• B)social costs will be greater than private costs.
• C)only government regulation will solve the problem.
• D)the market will not be able to reach any equilibrium.

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Definitions:

Net Water Movement

The overall transfer of water from one location to another, often across a membrane, driven by osmosis, filtration, or other forces.

Hypotonic

A term referring to a solution having an osmotic pressure (or solute concentration) less than that of the solution with which it is compared. Compare with hypertonic and isotonic.

Hypertonic

A solution that has a higher concentration of solutes compared to the solute concentration inside the cell, leading to the movement of water out of the cell.

Isotonic

A term applied to solutions that have identical concentrations of solute molecules and hence the same osmotic pressure. Compare with hypertonic and hypotonic.