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:

Pegboard

A board with a grid of holes designed to organize tools, parts, or materials, often used in workshops or craft areas.

Cost-Ratio Analysis

Cost-ratio analysis is a method of comparing the cost of an action to its benefits, often used in business and economics to determine the most economically feasible option.

Cost-Benefit Analysis

An economic evaluation technique that compares the costs and benefits of different projects or decisions to ensure efficient allocation of resources.

Highest Denomination

The largest value in a series or system, such as currency.