A Negative Externality

question 292

Multiple Choice

A negative externality

• A)is an adverse impact on a bystander.
• B)causes the product in a market to be under-produced.
• C)is an adverse impact on market participants.
• D)is present in markets where the good or service does not have any impact on bystanders.

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Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions, rather than external facts.

Social Institutions

Established sets of norms and structures that guide the behavior of individuals within a society, such as family, education, religion, and government.

Material Culture

The physical objects, resources, and spaces that people use to define their culture, including buildings, artwork, tools, and clothing.

Aesthetics

The branch of philosophy concerned with the nature and appreciation of beauty, art, and taste.