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
Economics
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How would you describe an economy that uses its resources to make the greatest possible number of goods and services?
a) efficient b) using opportunity costs well c) globally aware d) underutilized
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Which of the following would cause a currency to depreciate in a flexible exchange rate market?
a) Rising domestic interest rates. b) Reduced demand for imported goods. c) Increased investment abroad. d) A surge in foreign demand for a country's goods.
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