Graphically, the Effects of an External Cost Can Be Shown

question 209

Multiple Choice

Graphically, the effects of an external cost can be shown as

• A)a leftward shift of the market demand curve.
• B)a leftward shift of the market supply curve.
• C)a downward movement along the market demand curve.
• D)a rightward shift of the market supply curve.

---

Definitions:

Utilitarianism

A moral theory that suggests that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Corporate Codes

Guidelines and standards established by businesses to govern the behavior and actions of their employees and ensure ethical practices.

Vague

Lacking clarity or precision in thought, expression, or meaning, often intentionally to avoid commitment or to leave something open to interpretation.

First Amendment

is an amendment to the United States Constitution that protects freedom of speech, religion, press, assembly, and petition.