When a Positive Externality Exists, the Equilibrium Quantity That Emerges

question 181

Multiple Choice

When a positive externality exists, the equilibrium quantity that emerges from a competitive market is

• A)too high.
• B)too low.
• C)just right.
• D)sometimes too high and sometimes too low.
• E)zero.

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Definitions:

Sensorimotor Stage

The first of the four stages of cognitive development in Piaget's theory, spanning from birth to two years, where infants learn through interacting with the environment.

Perceptual Information

Data received by the senses that is then interpreted by the brain to understand the environment.

Violation-of-expectations

A method used in cognitive psychology to study the cognitive processes of infants, based on their reactions to events that defy their understanding of basic physical principles.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).