Question
What is a negative externality?(1 point)
Responses
Negative externalities occur when the social cost of a good or service is higher than the private cost.
Negative externalities occur when the social cost of a good or service is higher than the private cost.
Negative externalities occur when the social cost of a good or service is lower than the private cost.
Negative externalities occur when the social cost of a good or service is lower than the private cost.
Negative externalities are goods or services that are subject to the free-rider problem.
Negative externalities are goods or services that are subject to the free-rider problem.
Negative externalities are goods or services that one consumer can limit another consumer's use of.
Responses
Negative externalities occur when the social cost of a good or service is higher than the private cost.
Negative externalities occur when the social cost of a good or service is higher than the private cost.
Negative externalities occur when the social cost of a good or service is lower than the private cost.
Negative externalities occur when the social cost of a good or service is lower than the private cost.
Negative externalities are goods or services that are subject to the free-rider problem.
Negative externalities are goods or services that are subject to the free-rider problem.
Negative externalities are goods or services that one consumer can limit another consumer's use of.
Answers
GPT-4o mini
The correct response is:
**Negative externalities occur when the social cost of a good or service is higher than the private cost.**
This indicates that the actions of an individual or company have effects on third parties that are not reflected in the market prices, leading to a cost that is borne by society as a whole.
**Negative externalities occur when the social cost of a good or service is higher than the private cost.**
This indicates that the actions of an individual or company have effects on third parties that are not reflected in the market prices, leading to a cost that is borne by society as a whole.