If Companies That Were Creating Pollution Had to Pay the Social

When a negative externality exists in a market,total surplus: A) is decreased by deadweight loss compared to that same market without a negative externality. B) is the same as a market without a negative externality. C) is increased by deadweight gain compared to that same market without a negative externality. D) is the same but re-distributed differently than if that same market did not have a negative externality.

When an externality is present in a market,and correcting it increases the efficiency of the market,we can conclude it is a: A) negative externality. B) positive externality. C) network externality. D) either a negative or a positive externality.