When Government Makes It Possible to Externalize the Cost of a Good

question 295

Multiple Choice

When government makes it possible to externalize the cost of a good:

• A) there will be an optimal quantity of the good.
• B) there will be an insufficient quantity of the good.
• C) there will be too much of the good.
• D) the good will not be produced at all.

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Definitions:

Dollar Amount

The total monetary value or cost expressed in units of currency, often used to specify prices, costs, and financial transactions.

Base Compensation

The initial salary or wage provided to an employee not including benefits, bonuses, or any form of variable compensation.

Fringe Benefits Programs

Employer-provided supplementary benefits that accompany direct wages or salaries, such as health insurance, retirement plans, and paid vacations.

Organization

A structured group of people working together to achieve a collective goal or purpose.