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AP Microeconomics
Unit 6 – Market Failure and the Role of Government
Topic 6.2
A company make nuclear reactive products, when left without regulation they dump nuclear waste into river. What is being described, and how does the quantity produced in the market compare to the socially optimal quantity?
A negative externality; the market quantity is higher than the socially optimal quantity
A positive externality; the market quantity is higher than the socially optimal quantity
A public good; the market quantity is lower than the socially optimal quantity
A positive externality; the market quantity is lower than the socially optimal quantity
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AP Microeconomics - 6.2 Externalities
Key terms
Regulation
Socially Optimal Quantity
Nuclear Waste
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About Fiveable
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Resources
Cram Mode
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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