A negative externality exists when social costs exceed _

private benefits
social benefits
social costs
private costs.

The net effect of a negative externality ____
decreases
both producer and consumer surpluses.
only producer surplus.
the deadweight loss.
only consumer surplus.

Negative externalities occur when production and/or consumption impose external costs on third parties outside of the market for which no appropriate compensation is paid. This causes social costs to exceed private costs.

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A negative externality exists when social costs exceed _________ private benefits social benefits social costs private costs. The net effect of a negative externality ____________ decreases both producer and consumer surpluses. only producer surplus. the deadweight loss. only consumer surplus.

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A negative externality exists when social costs exceed _

private benefits
social benefits
social costs
private costs.

The net effect of a negative externality ____
decreases
both producer and consumer surpluses.
only producer surplus.
the deadweight loss.
only consumer surplus.