A Negative Externality Exists If

question 134

Multiple Choice

A negative externality exists if

• A)there are price controls in a market.
• B)there are quantity controls in a market.
• C)the marginal social cost of producing a good or service exceeds the private cost.
• D)the marginal private cost of producing a good or service exceeds the social cost.

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Definitions:

Thought

The mental process of considering, reasoning, or remembering; an idea or opinion produced by thinking.

Behaviour Patterns

Repeated sequences of actions that are characteristic to an individual or group, often indicating underlying mental or emotional states or social norms.

Sociocentric Conception

Refers to a perspective prioritizing group or societal norms and values over individual ones, emphasizing the interconnectedness of individuals within a society.

Collectivism

A social and cultural principle emphasizing the importance of groups and the collective over the preferences and rights of individuals.