When Negative Externalities Are Present in a Market

question 214

Multiple Choice

When negative externalities are present in a market

• A)private costs will be greater than social costs.
• B)social costs will be greater than private costs.
• C)only government regulation will solve the problem.
• D)the market will not be able to reach any equilibrium.

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Definitions:

Neurotransmitters

Chemicals that carry signals from one neuron to another.

Obsession

A persistent, intrusive, and unwanted thought, idea, or image that causes significant anxiety or distress.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, 5th Edition, a comprehensive classification of officially recognized psychiatric disorders.

Diagnostic Labels

Terms or categories used by healthcare professionals to describe and classify mental health conditions and physical diseases.