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:

Probable Truth

A statement or fact that is likely to be accurate or true based on evidence or reasoning.

Test of Truthfulness

A method or procedure used to determine the accuracy or honesty of a statement or proposition.

Statistical Analyses

The collection, examination, interpretation, presentation, and organization of data using mathematical theories and formulas to identify trends, patterns, or relationships among variables.

Empirical Reasoning

Making conclusions based on evidence derived from sensory experience or experiments.