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:

Stylomandibular Ligament

A band of fibrous tissue that extends from the styloid process of the temporal bone to the mandible, assisting in the support of the jaw.

Zygomatic Arch

The bony arch on the side of the skull forming the prominence of the cheek, connecting the zygomatic bone to the temporal bone.

Temporomandibular Joint

The hinge joint that connects the jaw to the temporal bones of the skull, allowing movement for chewing and talking.

Occipital Bone

A cranial bone located at the back and lower part of the skull which houses the occipital lobes of the brain.