When the Production of a Good Creates External Costs

question 57

Multiple Choice

When the production of a good creates external costs,

• A)Profits for the producer of the good will be lower.
• B)Production of the good will be lower.
• C)Society's collective well-being will be lower.
• D)The level of environmental pollution will be lower.

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Definitions:

James-Lange Theory

A theory of emotion suggesting that emotions occur as a result of physiological reactions to events.

Cannon-Bard Theory

A theory of emotion that proposes emotions and bodily reactions occur simultaneously and independently of one another.

Adoptive Parents

Individuals who legally take on the responsibility of raising a child who is not biologically their own.

Biological Parents

The individuals from whom one inherits their genetic material; also known as birth parents.