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Subject - Economics:

Microeconomics

MCQ - 153-4163

Question:

The production of chicken often results in offending odors that are picked up by the wind and blown over rural communities. This is an example of a ______ externality, the result of which are spillover ______ and an _______ of resources to chicken production.

  1. negative, costs, underallocation
  2. negative, benefits, overallocation
  3. negative, benefits, underallocation
  4. negative, benefits, overallocation
  5. negative, costs, overallocation

Correct Answer: E

Explanation:

Negative externalities, like “fowl” odors, impose spillover costs upon third parties. These costs, ignored by the market, reflect an over-allocation of resources to chicken production.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: The production of chicken often results in offending odors that are picked up by the wind and blown over rural communities. This is an example of a _ .... cken production. , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 153-4163.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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