Which of the Following Describes How a Negative Externality Affects

question 65

Multiple Choice

Which of the following describes how a negative externality affects a competitive market?

• A)The externality causes a difference between the private cost of production and the social cost.
• B)The externality causes a difference between the private cost of production and the private benefit from consumption.
• C)The externality causes consumer surplus to exceed producer surplus.
• D)The externality causes a difference between the private cost of production and the equilibrium price.

---

Definitions:

Labour Markets

The supply and demand dynamics of labor, where employers seek to hire workers and workers seek employment.

KSAs

Knowledge, Skills, and Abilities; refers to the competencies required to perform a job effectively.

Preferential Consideration

The practice of giving priority or advantage to certain employees or candidates, often based on specific criteria or attributes.

Retention

Retention in a business context refers to the ability of a company to keep its employees from leaving to work elsewhere.