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:

Orange

A citrus fruit known for its round shape and bright orange color, as well as being a rich source of Vitamin C.

Lower Esophagus

The terminal section of the esophagus which connects to the stomach, responsible for transporting ingested materials into the stomach for digestion.

Heartburn

A burning discomfort or pain in the chest, often caused by acid reflux from the stomach into the esophagus.

Bile Duct

A series of tubes that transport bile from the liver and gallbladder to the duodenum for digestion of fats.