When the Consumption of a Good or Service Imposes Costs

question 145

Multiple Choice

When the consumption of a good or service imposes costs to society that are not reflected in the market price of the good,_____

• A)a negative externality arises.
• B)it implies that a renewable resource has been used in the production of the good.
• C)a positive externality arises.
• D)it implies that the good is a public good.
• E)it implies that a nonrenewable resource has been used in the production of the good.

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Definitions:

Executive Order

A directive issued by the head of a government, such as a president or governor, that has the force of law.

Executive Branch

The part of government responsible for implementing and enforcing laws, traditionally led by the president or prime minister.

Legislative Branch

The legislative branch is one of the three branches of government responsible for creating, amending, and ratifying laws.

U.S. Cabinet

A group of the most senior appointed officers of the executive branch of the U.S. government, typically heads of federal executive departments.