If children impose a negative externality, which of the following must be true?
A)parents would rather have less children
B)parents' costs exceed the benefits associated with having children
C)parents do not bear the full cost imposed by their children
D)all of the above

Question

Quizplus · Accepted Answer

The concept of negative externalities is that the costs of a certain action are not fully borne by the individual taking that action, but by the surrounding community as a whole. In this case, if children are imposing a negative externality, it means that the costs of having and raising children are not fully borne by the parents, but are being imposed on the broader community. Therefore, the correct answer would be C, as parents do not bear the full cost imposed by their children. It is not necessarily true that parents would rather have less children or that their costs exceed the benefits associated with having children.

If Children Impose a Negative Externality, Which of the Following