A negative externality:
A. is a payment received to parties not involved in the production or consumption of a good.
B. is a cost borne by parties not involved in the production or consumption of a good.
C. results from the absence of well-defined property rights.
D. is a cost borne by parties not involved in the production or consumption of a good and results
from the absence of well-defined property rights.
Solution
Negative externalites implies the side effects of economics activities or consumption and
production which are not taken into account while deciding the level of output. The negative side
effects can not be lamented since the people do not have well defined property rights.
Hence correct Option D is a cost borne by parties not involved in the production or consumption
of a good and results from the absence of well-defined property rights..
A negative externalityA. is a payment received to parties not inv.pdf
1. A negative externality:
A. is a payment received to parties not involved in the production or consumption of a good.
B. is a cost borne by parties not involved in the production or consumption of a good.
C. results from the absence of well-defined property rights.
D. is a cost borne by parties not involved in the production or consumption of a good and results
from the absence of well-defined property rights.
Solution
Negative externalites implies the side effects of economics activities or consumption and
production which are not taken into account while deciding the level of output. The negative side
effects can not be lamented since the people do not have well defined property rights.
Hence correct Option D is a cost borne by parties not involved in the production or consumption
of a good and results from the absence of well-defined property rights.
