In the Case of a Negative Externality

question 41

Multiple Choice

In the case of a negative externality,

• A) marginal external costs are greater than marginal private costs.
• B) marginal external costs are less than marginal private costs.
• C) marginal external benefits are greater than marginal private benefits.
• D) marginal external benefits are equal to marginal private costs.
• E) none of the above

---

Definitions:

Point Method

A job evaluation method that quantitatively assesses a job's key components using a point system, contributing to determining its relative value or pay scale.

Scientific Process

A methodical and empirical approach to research and investigation characterized by systematic experimentation, observation, and analysis.

Internal Equity

The fairness in pay levels for employees within the same organization, ensuring that compensation is consistent with the value of different roles.

Reliability

The degree to which an assessment, measurement, or process consistently produces the same results under the same conditions.