In the Case of a Negative Externality,the Social Marginal Cost

question 32

Multiple Choice

In the case of a negative externality,the social marginal cost will

• A)exceed the private marginal cost.
• B)be equal to private marginal cost.
• C)fall short of private marginal cost.
• D)bear no significant relation to private marginal cost.

---

Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Marginal Ordinary Income Tax Rate

This rate is the percentage at which the last dollar of a taxpayer's income is taxed, reflecting the tax bracket into which their income falls.

Qualified Dividends

Dividends that meet specific criteria set by the tax code and are eligible for a lower tax rate compared to ordinary income.

Taxation Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level and type of income.