A Negative Externality Is a Situation in Which

question 273

Multiple Choice

A negative externality is a situation in which

• A) there is a spillover of benefits.
• B) a cost associated with an economic activity is borne by a third party.
• C) a firm is paying in excess of the total costs of producing a good.
• D) none of the above.

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Definitions:

Capillary Beds

Networks of capillaries functioning together to exchange gases, nutrients, and wastes between blood and tissues.

Hepatic Vein

Vein that drains the liver into the inferior vena cava.

Right Atrium

The right atrium is one of the four chambers of the heart, receiving deoxygenated blood from the body and passing it to the right ventricle.

Force Exerted

The physical pressure or effort applied to something.