An Externality Occurs When

question 12

Multiple Choice

An externality occurs when

• A) the costs of producing a good are paid entirely by the producer.
• B) some of the costs of producing a good are paid by someone other than the producer.
• C) the marginal social cost of an activity increases as that activity is increased.
• D) Both answers A and C are correct.

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Definitions:

Humors

In historical medicine, refers to the four body fluids (blood, phlegm, black bile, and yellow bile) believed to determine health and temperament.

Definition of Health

A state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.

Cultural Beliefs

The shared ideas, values, and practices that characterize a group of people and influence their behaviors and perceptions.

Cultural Aspects of Pain

The influence of cultural background on individuals' perceptions, expressions, and management strategies of pain.