Negative Externalities Lead Markets to Produce

question 185

Multiple Choice

Negative externalities lead markets to produce

• A)greater than efficient output levels and positive externalities lead markets to produce smaller than efficient output levels.
• B)smaller than efficient output levels and positive externalities lead markets to produce greater than efficient output levels.
• C)greater than efficient output levels and positive externalities lead markets to produce efficient output levels.
• D)efficient output levels and positive externalities lead markets to produce greater than efficient output levels.

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Definitions:

Bananas

A curved, yellow fruit with a soft, sweet flesh, rich in potassium and commonly consumed worldwide.

Opportunity Cost

The lost benefits of the next best alternative when one alternative is chosen over another.

Price

The amount of funds expected, essential, or submitted in reimbursement for something.

Apples

A type of fruit that is grown on apple trees, known for its sweet taste and nutritional benefits, often consumed fresh or used in various dishes.