A negative externality is a situation in which
A) there is a spillover of benefits.
B) a cost associated with an economic activity is borne by a third party.
C) a firm is paying in excess of the total costs of producing a good.
D) none of the above.
B
You might also like to view...
A dollar's value can change:
A. over time. B. across different locations. C. Both of these statements are true. D. Neither of these statements is true.
Any costly activity firms undertake to protect their monopoly status is referred to as
a. market power b. price-setting behavior c. rent seeking d. economies of scale e. legal intervention
That some schools direct females away from science and math courses is evidence of
a. labor-market discrimination b. discrimination that occurs prior to people entering the labor market c. discrimination by customers d. discrimination by employers
If the United States imposed a 25 percent tariff on imports of minivans, the effect would be to
A. raise the price and reduce the quantity of imports. B. raise the price and the quantity of imports. C. lower the price and the quantity of imports. D. raise the quantity and reduce the price of imports.