If a Good That Generates Negative Externalities Were Priced to Account

question 89

Multiple Choice

If a good that generates negative externalities were priced to account for spillover costs,then its:

• A) price would decrease and its output would increase.
• B) output would increase,but its price would remain constant.
• C) price would increase and its output would decrease.
• D) price would increase,but its output would remain constant.

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Definitions:

Blau and Duncan

Sociologists who developed the Blau-Duncan model, which outlines the structural factors influencing occupational mobility and stratification in society.

Subsequent Research

Investigations or studies conducted after a preliminary study, to further explore a subject or hypothesis.

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of individuals or households with income levels insufficient to meet basic needs.

Consensus Crimes

Illegal acts that nearly all people agree are bad and harm society greatly. The state inflicts severe punishment for consensus crimes.