The Presence of Negative Externalities Leads to a Misallocation of Societal

question 158

Multiple Choice

The presence of negative externalities leads to a misallocation of societal resources because:

• A)​whenever external costs are imposed on outside parties, the good should not be produced at all.
• B)​less of the good than is ideal for society is produced.
• C)​there are some costs associated with production that the producer fails to take into consideration.
• D)​the government always intervenes in markets when negative externalities are present, and the government is inherently inefficient.

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Definitions:

Adult Child

An adult who exhibits behaviors, attitudes, or emotional responses that seem more characteristic of children, often as a result of certain upbringing.

Ageism

Discrimination or prejudice against individuals based on their age, typically directed towards older adults.

Caregiver Burnout

A state of physical, emotional, and mental exhaustion experienced by caregivers, often due to the prolonged and overwhelming demands of caregiving.

Exhaustion

A state of extreme physical or mental fatigue, often resulting from prolonged stress or overwork.