The Optimal Mix of Output May Not Be Produced by an Economy

question 26

Multiple Choice

The optimal mix of output may not be produced by an economy because of the existence of

• A)Inequity.
• B)Internalities.
• C)Underproduction of public goods.
• D)Production possibilities.

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Definitions:

Money

A medium of exchange in the form of coins and banknotes; used to facilitate transactions for goods, services, and debts.

Food

Nutritious substances that organisms consume or absorb in order to maintain life and growth.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans.

Positive Reinforcement

A process in which presenting a stimulus following a behavior increases the likelihood of the behavior occurring again.