When the Social Cost of Production Is Greater Than the Private

question 177

Multiple Choice

When the social cost of production is greater than the private cost, we have a

• A)positive externality
• B)negative externality
• C)public good
• D)private good
• E)positive spillover

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Definitions:

Negative Relationship

Relationship in which increases in scores for one variable are associated with decreases in scores of another variable.

Instructor

A person who teaches or educates, often within a school or academic context.

Distance

A measure of the space between two points, often used in various scientific and mathematical contexts.

Pearson Correlation Coefficient

Statistic measuring the linear relationship between two variables measured at the interval and/or ratio level of measurement.