When Production of a Good Creates an External Benefit

question 109

Multiple Choice

When production of a good creates an external benefit

• A) there is a negative externality.
• B) too much of the good is being produced.
• C) there is a positive externality.
• D) it results in the tragedy of the commons.
• E) a club good is being produced.

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Definitions:

Crepuscular

Crepuscular animals are those that are active primarily during twilight, that is, at dawn and dusk, taking advantage of lower light conditions.

Aposematic Coloration

The conspicuous coloring of a poisonous or distasteful organism that enables potential predators to easily see and recognize it. Also called warning coloration. Compare with cryptic coloration.

Habituation

A simple form of learning where an organism eventually stops responding to a stimulus after repeated exposures, without any reward or punishment.

Worker Bees

Female bees that are not queens and perform all the work tasks necessary for colony survival.