If a Negative Externality Exists in the Market for Dirt

question 4

Multiple Choice

If a negative externality exists in the market for dirt bikes and that market is perfectly competitive:

• A) less than the efficient output of dirt bikes will be produced.
• B) the price of dirt bikes exceeds the marginal social cost.
• C) the price of dirt bikes equals the marginal social cost.
• D) the price of dirt bikes is less than the marginal social cost.

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Definitions:

Secondary Reinforcement

A process by which a stimulus reinforces a behavior after it becomes associated with a primary reinforcer.

Stimulus Predictability

The extent to which the occurrence and properties of a stimulus can be anticipated based on previous experience.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Sexually Arousing

Refers to stimuli or aspects that induce sexual excitement or desire in an individual.