Negative Externalities

question 26

Multiple Choice

Negative externalities:

• A)create a deadweight loss as do positive externalities.
• B)move the economy closer to the social optimum.
• C)create a deadweight loss and move the equilibrium away from the social optimum.
• D)should be eliminated completely to move to the social optimum.

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Definitions:

Certainty

The state of being sure or confident about something, often without any doubt.

Opinions

Personal beliefs or judgments that are not necessarily based on fact or knowledge.

Valid

A term used to describe something that is logically sound, well-grounded, or legally acceptable.

Dialectical Reasoning

A method of argument for resolving disagreement that involves the exchange of propositions (theses) and counter-propositions (antitheses) resulting in a synthesis of the opposing assertions.