Which of the following is the best example of a negative externality? aOil leakages from drilling platforms in the Gulf of Mexico bA decline in oil stock prices as a result of bad management cAn increase in the price of oil due to the imposition of environmental regulations dAn increase in the price of oil due to action taken by the Organization of Petroleum Exporting Countries (OPEC)

Which of the following is true of a negative externality?Group of answer choicesThe government can use subsidies to encourage firms to internalize the externality.The government must take over the production of this good so that the externality can be internalized.Some benefits accrue to a third party.Its existence always requires corrective measures by the government.Some costs are borne by a third party.

Which of the following is true when the production of a good results in negative externalities? aThe government must produce the good. bThe private market will produce too little of the good. cThe private market price will be too low. dThe government must prevent the production of the good.

Price increase as a result of high demand is an example of:答案选项组Negative externalityNo externalityMarket malfunctionPositive externality

If companies who internalised an externality want to supply less at any given price compared to the original market supply, it must be a:Question 2Select one:A.Social externality.B.Positive externality. C.Negative externality.D.Network externality.

When externalities exist _____.Multiple choice question.outside intervention may be able to improve the market outcome increasing efficiency and economic surplusefficiency and economic surplus are sometimes affected but not alwaysoutside intervention increases efficiency but not economic surplusoutside intervention usually decreases efficiency and economic surplus