The Basic Reason That a Competitive Unregulated Market Produces an Inefficient

question 58

Multiple Choice

The basic reason that a competitive unregulated market produces an inefficient amount of a good with an external cost is because

• A) external costs are not a political issue.
• B) the general public does not care about external costs.
• C) producers cannot measure marginal social cost.
• D) the external cost is paid by consumers rather than producers.
• E) producers do not pay the external cost.

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Definitions:

Watching Behaviors

The act of observing actions and reactions of individuals or groups in a systematic manner to gather data or insights.

Intervening

The action of coming between so as to prevent or alter a result or course of events, often in the context of providing assistance or therapy.

Father Of Psychology

Wilhelm Wundt, often credited with establishing psychology as a distinct scientific discipline by founding the first laboratory dedicated to psychological research in 1879.

Sigmund Freud

An Austrian neurologist and the father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.