If a Good That Generates Negative Externalities Was Priced to Take

question 41

Multiple Choice

If a good that generates negative externalities was priced to take into account these negative externalities, 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:

Specific Instructions

Detailed information or orders on how to perform a task or complete a process.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, emphasizing environmental, social, and economic sustainability.

Current Human Needs

The existing requirements or desires essential for the well-being and survival of humans.

Future Generations

Refers to the people who will live in the times to come, especially concerning their environmental, economic, and social inheritance.