Failure to Consider the Impact of a Negative Externality Results

question 89

Multiple Choice

Failure to consider the impact of a negative externality results in

• A) scarcity.
• B) an internality.
• C) a positive externality.
• D) too little of that activity.
• E) too much of that activity.

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Definitions:

External Benefit

A benefit derived from a product or service that affects people who are not directly involved in the transaction or production of it.

Pollution Reduction

Efforts and measures taken to decrease the amount of pollutants released into the environment.

Trade Permits

Licenses or permissions required by governments for businesses to engage in certain trade activities, often used to control the volume or nature of traded goods and services.

Trade Permits

Authorizations given by government or other regulatory bodies allowing businesses to engage in foreign trade activities.