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

question 20

Multiple Choice

When a negative externality is present in a market, the government should:

• A)always intervene.
• B)intervene it if the public supports doing so.
• C)never intervene.
• D)intervene if the benefit of doing so exceeds the cost.

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Definitions:

Randomly Selected

A method of selection where each member of a population has an equal chance of being included in the sample, ensuring the sample's representativeness.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, which can provide insight into the properties of the population from which the sample was drawn.

Freshman Class

The group of students who are in their first year of secondary or higher education at a particular institution.

Usable Lifetime

The period during which a product or component is expected to perform its intended function satisfactorily under normal usage conditions.