Consider Two Goods--One That Generates External Benefits and Another That

question 70

Multiple Choice

Consider two goods--one that generates external benefits and another that generates external costs. A competitive market economy would tend to produce

• A) too much of both goods.
• B) too little of both goods.
• C) too much of the good that generates external benefits and too little of the good that generates external costs.
• D) too little of the good that generates external benefits and too much of the good that generates external costs.

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Definitions:

Mitral Valve Prolapse

A condition in which the mitral valve of the heart does not close properly, sometimes causing blood to leak backward into the left atrium.

Left Atrium

The left atrium is the top left section of the heart, responsible for receiving blood rich in oxygen from the lungs and transferring it to the left ventricle.

Pulmonary Arteries

The pulmonary arteries are the vessels that carry deoxygenated blood from the right ventricle of the heart to the lungs for oxygenation.

Pulmonary Veins

Veins that transfer oxygenated blood from the lungs to the left atrium of the heart.