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

question 96

Multiple Choice

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

• A)must regulate it.
• B)should regulate it if the public supports regulation.
• C)should never regulated it.
• D)should regulate it if the benefits of regulation exceed the costs.

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Definitions:

Commitment

A state or quality of being dedicated to a cause, activity, or relationship, often implying a strong sense of loyalty and responsibility.

Moratorium

A suspension of activity or a period of deliberation and experimentation without immediate commitment, often related to identity exploration during adolescence.

White Privilege

Social and economic benefits that are automatically granted to individuals simply because they are members of the White majority.

Economic Benefits

The advantages gained from certain actions, decisions, or policies that lead to an improvement in financial standing or economic condition.