In the case of a negative                externality, there’s                of a good, resulting in a                to society, which might be remedied by imposing a                on the good.Group of answer choicesconsumption; overconsumption; loss; taxproduction; overconsumption; gain; taxproduction; overproduction; loss; subsidyconsumption; underconsumption; loss; tax

If the social benefit of consuming a good or a service exceeds the private benefit,Group of answer choicesthe market achieves economic efficiency.a negative externality exists.a positive externality exists.the sum of consumer surplus and producer surplus is maximised.

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.

Consider a market with a negative externality. The market will tend to ________ the good because the market participants tend to ignore the ________ of their decision.Group of answer choicesoverproduce; external benefitunderproduce; external benefitunderproduce; external costoverproduce; external costoverproduce; internal benefit

When production of a good creates an external benefit,Group of answer choicesthere is a positive externality.it results in the tragedy of the commons.there is a negative externality.a club good is being produced.too much of the good is being produced.

Two types of private solutions to the problem of externalities areGroup of answer choicescharities and subsidies.taxes and subsidies.charities and the Golden Rule.the Golden Rule and taxes