A negative externality occurs when:
a. the social cost curve lies above the private cost curve
b. the social cost curve is below the private cost curve.
c. a third party benefits from a market transaction by others.
d. there is an increase in the private cost borne by sellers.
a
You might also like to view...
Suppose the short-run production function is q = L0.5. If the marginal cost of producing the tenth unit is $5, what is the wage per unit of labor?
A) $1 B) $0.5 C) $0.25 D) It cannot be determined without more information.
Goods and services that are used up in the production of other goods and services are called ________ goods and services.
A. value added B. final C. nominal D. intermediate
Whenever technology advances, an economy can produce more output with
A. More resources. B. No resources. C. Current resources. D. Fewer resources.
Evidence suggests that income inequality in China is
A. increasing relatively rapidly. B. decreasing relatively slowly. C. decreasing relatively rapidly. D. increasing relatively slowly.