If the Production of a Product or Service Involves External

question 129

Multiple Choice

If the production of a product or service involves external benefits, then the government can improve efficiency in the market by

• A)providing a subsidy to correct for an overallocation of resources.
• B)providing a subsidy to correct for an underallocation of resources.
• C)imposing a corrective tax to correct for an overallocation of resources.
• D)imposing a corrective tax to correct for an underallocation of resources.

Understand the basic principles of blood flow and pressure in the cardiovascular system.

Recognize the components and functions of blood.

Identify the major types of blood vessels and their roles.

Describe the structure and function of the heart.

---

Definitions:

Private Good

A product or service that is consumed by an individual without providing any benefit to others, characterized by its excludability and rivalry in consumption.

Economic Efficiency

The optimal allocation of resources to maximize output or outcomes without waste.

Economic Efficiency

Economic efficiency occurs when the allocation of resources maximizes the total net benefit received by all individuals in the economy.

Constitutional Rules

The fundamental principles and established precedents according to which a state or other organization is governed.