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Exhibit 31-4 -Refer to Exhibit 31-4. If a Negative Externality Exists,then the Negative

Question 116

Multiple Choice

Exhibit 31-4
Exhibit 31-4 -Refer to Exhibit 31-4. If a negative externality exists,then the market ____________output by the amount ________________. A) overproduces; Q<sub>1</sub> B) underproduces; Q<sub>2</sub> C) overproduces; Q<sub>1</sub> - Q<sub>2</sub> D) underproduces; Q<sub>2</sub> - Q<sub>1</sub>
-Refer to Exhibit 31-4. If a negative externality exists,then the market ____________output by the amount ________________.


A) overproduces; Q1
B) underproduces; Q2
C) overproduces; Q1 - Q2
D) underproduces; Q2 - Q1

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