An Industry with External Costs Produces

question 216

Multiple Choice

An industry with external costs produces:

• A) a quantity of output that is the socially ideal quantity.
• B) a smaller quantity of output than the socially ideal quantity.
• C) a larger quantity of output than the socially ideal quantity.
• D) the socially ideal quantity of output if a specific subsidy is given to buyers.

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Definitions:

Substantial Probability

means a significant likelihood of an event occurring, used in various contexts to assess risks or outcomes.

Serious Physical Harm

Significant or severe injury to the body that can result in lasting physical damage or impairment.

Standard Precautions

A set of infection control practices used to prevent transmission of diseases that can be acquired by contact with blood, body fluids, non-intact skin, and mucous membranes.

OSHA

An agency within the U.S. government, the Occupational Safety and Health Administration is dedicated to maintaining and ensuring safety and health standards at work.