Multiple Choice
A negative externality generates
A) a social cost curve that is above the supply curve (private cost curve) for a good.
B) a value to a consumer that is less than the total consumer surplus
C) a social cost curve that is below the supply curve (private cost curve) for a good.
D) a social value curve that is above the demand curve (private value curve) for a good.
Correct Answer:

Verified
Correct Answer:
Verified
Q31: Roberto and Thomas live in a university
Q32: Refer to the figure below. Assume the
Q33: A positive externality (that has not been
Q34: If transactions costs exceed the potential gains
Q35: Tradable pollution permits<br>A) reduce the incentive for
Q37: According to the Coase theorem, private parties
Q38: Market failure in the form of externalities
Q39: To produce honey, beekeepers place hives of
Q40: Why do economists prefer Pigovian taxes over
Q41: According to the Coase theorem, an externality