Which of the Following Is a Benefit of Internalizing a Negative

question 117

Multiple Choice

Which of the following is a benefit of internalizing a negative externality?

• A) All pollution is eliminated.
• B) More output is produced.
• C) The deadweight loss is eliminated.
• D) The good is sold for a lower price.
• E) Output increases and prices are lower.

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Definitions:

Measured

Quantified or assessed in terms of quantity, degree, or size.

GDP

Gross Domestic Product refers to the aggregate value of all products and services generated inside a nation's boundaries over a defined time frame.

Law Eliminating Holidays

A hypothetical regulation that would remove public holidays from legal recognition, potentially affecting work schedules and compensation.

Leisure

Time spent away from business, work, job hunting, domestic chores, and education, as well as necessary activities such as eating and sleeping.