A Negative Externality

question 375

Multiple Choice

A negative externality

• A)is a cost to a bystander.
• B)is a cost to the buyer.
• C)is a cost to the seller.
• D)exists with all market transactions.

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Definitions:

Lorazepam

A medication belonging to the benzodiazepine class used to treat anxiety disorders, insomnia, and seizures.

Hydrochlorothiazide

A diuretic medication commonly used to treat high blood pressure and swelling due to fluid build-up, by helping the kidneys eliminate excess salt and water.

Rofecoxib

A type of nonsteroidal anti-inflammatory drug (NSAID) that was used to treat pain and inflammation but was withdrawn from the market due to safety concerns.

Inderal

A brand name for propranolol, a medication used to treat high blood pressure, angina, and other conditions by reducing the workload on the heart.