FIGURE 16- 1

question 82

Multiple Choice

FIGURE 16- 1
-Consider a product (say,tulip bulbs) that generates positive externalities when it is consumed (other people enjoy looking at them) .In this case,

• A)firms will produce too little of this product unless they internalize the external benefits.
• B)at the market equilibrium,the price is too high to be allocatively efficient.
• C)at the market equilibrium,the output would be greater than the socially optimal amount.
• D)the government could tax the production of this good to improve efficiency.
• E)at market equilibrium,the marginal social benefit is less than the marginal cost of producing the last unit.

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Definitions:

Hemispheres

Rephrased: The two symmetrical halves of the brain or certain organs, each performing specific functions and controlling different aspects of sensory and motor skills.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that is involved in many functions including muscle stimulation, memory, and learning.

Dopamine

A neurotransmitter involved in many functions, including motivation, reward, attention, and the regulation of movements.

Serotonin

Serotonin is a neurotransmitter that plays a key role in mood regulation, digestion, sleep, and other bodily functions.