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In economics, why do we consider negative externalities to be a problem? O a. Because they hurt people. O b. Because they hurt consumers,
In economics, why do we consider negative externalities to be a problem? O a. Because they hurt people. O b. Because they hurt consumers, causing consumer surplus to be lower than it should be. c. Because they're not taken into account by supply and demand, so they cause the market equilibrium to be different from what is best for society. O d. Because they benefit companies who pollute at the expense of ordinary people. QUESTION 5 D In economics, why do we consider positive externalities to be a problem? a. We actually don't. Positive externalities benefit people, so they are a good thing. Only negative externalities are a problem. O b. Because they reduce total economic surplus in a market. O c. Because they're not taken into account by supply and demand, so they cause the market equilibrium to be different from what is best for society. O d. Because they benefit consumers at the expense of producers, throwing the market off balance.
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