In a Market Where There Are External or Negative Externalities

question 32

Multiple Choice

In a market where there are external or negative externalities associated with consumption and production, the equilibrium will not be efficient because:

• A)price will be greater than MC.
• B)firms will shut down until costs are reduced.
• C)costs of production will, on average, be too high.
• D)too many resources will be allocated to production of the good.

Understand the fundamental concepts and differences of conditioning processes, including classical and operant conditioning.

Recognize the role of observation in learning processes and identify key contributors to observational learning theory.

Differentiate between various types of learning (e.g., latent learning, insight learning) and their characteristics.

Identify and differentiate between conditioned and unconditioned stimuli and responses.

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Definitions:

Pigouvian Subsidy

A payment designed to encourage activities that yield external benefits.

Scenic Beauty

The visual appeal and aesthetic value of a particular landscape or location, often contributing to its desirability for recreation and tourism.

Bat House

A man-made structure designed to provide roosting sites for bats, facilitating natural pest control and biodiversity.

Policy Solution

A strategy or plan of action designed to address a particular public issue or problem.