A negative externality exists when
A. a person's or group's actions cause a benefit that is felt by others.
B. a person's or group's actions cause a cost that is felt by others.
C. market output is less than socially optimal output.
D. a and c
E. b and c
Answer: B
Economics
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If both autonomous imports and autonomous taxes decrease by $100B we expect that equilibrium income will
A) increase by more than $200B. B) decrease by more than $200B. C) increase by $200B. D) remain unchanged.
Economics
When an imported good has restrictions are placed on it that limits the amount that can be imported and as a result the price of the good increases, the demand curve for that good will
A) shift rightward. B) shift leftward. C) become steeper. D) be unaffected.
Economics