When External Costs Are Present in a Market

question 100

Multiple Choice

When external costs are present in a market,

• A) less of the good will be produced than the amount consistent with economic efficiency.
• B) more of the good will be produced than the amount consistent with economic efficiency.
• C) the amount of the good produced will be equal to the amount consistent with economic efficiency.
• D) corresponding external benefits are always generated.

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Definitions:

ADH Levels

Concentration of Antidiuretic Hormone in the bloodstream, which regulates water balance in the body by controlling the amount of water reabsorbed by the kidneys.

Water Content

The amount of water present in a substance, organism, or environment, critical for maintaining life and chemical reactions.

Stretch Receptors

Sensory receptors that sense muscle stretch and contraction, thereby providing feedback to maintain posture and balance.

Atrial Natriuretic Hormone

A hormone secreted by the heart's atria that regulates blood pressure, blood volume, and the balance of fluids and electrolytes in the body.