Which of the following situations is descriptive of

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116.Which of the following situations is descriptive of the existence of a negative externality.a.Vernon studies for his biology test late into the night and oversleeps the next morning, thusmissing the test.b.Nancy is in the library looking for a book. She is talking to herself and consequentlydisturbs a few people in the library.c.Bob learns later that he could have purchased a pair of shoes for less than he paid.d.Jackie has had the flu and has stayed in bed for a week.e.none of the aboveANS:BPTS:1DIF:Difficulty: Moderate
NAT:BUSPROG: AnalyticLOC:DISC: Markets, market failure, and externalitiesKEY:Bloom's: Application117.In the case of a negative externality, the entire marginal social cost curve liesPTS:1DIF:Difficulty: Moderate
NAT:BUSPROG: AnalyticLOC:DISC: Markets, market failure, and externalitiesKEY:Bloom's: Comprehension118.There is no market failure if
PTS:1DIF:Difficulty: Moderate
NAT:BUSPROG: AnalyticLOC:DISC: Markets, market failure, and externalitiesKEY:Bloom's: Comprehension119.In the case of a negative externality, the socially optimal output naturally exists ifPTS:1DIF:Difficulty: Moderate
NAT:BUSPROG: AnalyticLOC:DISC: Markets, market failure, and externalitiesKEY:Bloom's: Comprehension

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Term
Fall
Professor
N/A
Tags
Externality, c

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