Which of the Following Is an Example of a Negative

question 73

Multiple Choice

Which of the following is an example of a negative externality?

• A) A decrease in available educational options due to government intervention.
• B) An increase in government bureaucracy and red tape.
• C) An increase in the incidence of cancer due to pollution.
• D) An introduction to a pollution decreasing technology.

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Definitions:

Vertical Price-Fixing

An illegal agreement between parties at different levels of the same supply chain, such as manufacturers and retailers, to control prices.

Horizontal Price-Fixing

An agreement between competitors at the same level of the supply chain to set prices, restrict production, or reduce competition.

Sherman Act Section 1

A provision of U.S. antitrust law that prohibits contracts, combinations, or conspiracies that restrain interstate or foreign trade.

Violation

The act of disregarding or breaking a law, agreement, or rule, resulting in possible legal penalties or consequences.