Which of the Following Statements Is True

question 10

Multiple Choice

Which of the following statements is true?

• A) If a buyer ends up being worse off from an exchange rather than better off as expected, this is a negative externality.
• B) Secondhand cigarette smoke is an example of a negative externality.
• C) As long as the benefits to society from an exchange outweigh the costs to society, no negative externality has occurred.
• D) As long as the benefits to society from an exchange outweigh the costs to the producer of the good or service, no negative externality has occurred.

---

Definitions:

Environmental Impact

The effect that human activities and natural processes have on the environment, encompassing changes to ecosystems, biodiversity, and human health.

Directories

Organized listings of information, often about businesses, people, websites, or services, designed to help users find specific information quickly.

High Delivery Costs

Expenses associated with transporting products from the manufacturer or seller to the consumer, which are significant compared to the overall cost or value of the product.

Banner Blindness

The phenomenon where website users consciously or unconsciously ignore banner-like information, usually ads, on websites.