In the Case of Either a Positive or Negative Externality,it

question 22

Multiple Choice

In the case of either a positive or negative externality,it will always be true that,relative to the social optimum:

• A)the market price will be too low.
• B)the market price will be too high.
• C)the market price will send an inaccurate signal of true cost or benefit.
• D)the quantity provided by the market will be too large.

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Definitions:

Median

A statistical measure that represents the middle value in a dataset, where half the numbers are above and half are below.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution. It aims to provide an accurate description of the entire dataset.

Mean

In statistics, the average of a set of numbers, calculated by adding them all up and dividing by the count of those numbers.

Variation

Variation refers to the differences in characteristics or traits among individuals within a population, arising from genetic diversity or environmental factors.