If a Negative Externality Results from the Refining of Oil

question 123

Multiple Choice

If a negative externality results from the refining of oil, the cost of production as seen by the oil refinery:

• A)​does not include the external cost.
• B)​includes the external cost.
• C)​does not include the external benefit.
• D)​includes the external benefit.

---

Definitions:

Social Process

The pattern of growth and change in a society over time, involving the interaction between individuals and groups.

Interpersonal Issues

Problems or conflicts that arise in the course of interactions between individuals, often due to miscommunication, differences in values, or personality clashes.

Personal Comfort

The state of physical and psychological ease or well-being experienced by an individual, often influenced by environmental factors or personal preferences.

Power Distribution

The way authority, control, and decision-making are spread across an organization or society.