When a Negative Externality Exists,_______________________ and Thus _______________ Intervention May

Multiple Choice

When a negative externality exists,_______________________ and thus _______________ intervention may be needed to achieve efficiency.

A) external costs are necessarily greater than private costs; government
B) social costs equal private costs; no government
C) social costs are less than private costs; government
D) social costs are greater than private costs; government
E) none of the above