Suppose the Actions of the Producers of a Good Generate

question 162

Multiple Choice

Suppose the actions of the producers of a good generate an external benefit which results in the actual market price of $30 and market output of 220 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient price would higher than $30 while the efficient output would be less than 220 units.
• B) The efficient price would be higher than $30 while the efficient output would be greater than 220 units.
• C) The efficient price would be lower than $30 while the efficient output would be less than 220 units.
• D) The efficient price would be lower than $30 while the efficient output would be greater than 220 units.

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Definitions:

Autonomic Arousal

The activation of the autonomic nervous system, which can result in physiological changes like increased heart rate or sweating, often in response to stress or perceived threats.

Attraction Attribution

The process of explaining the reasons for one's attraction to others, often attributing it to various factors like personality, appearance, or similarity.

Schachter's Two-Factor Theory

A theory suggesting that emotions are based on physiological arousal and the cognitive interpretation of that arousal.

Primary Reaction

In psychology, this refers to an infant's instinctive responses to stimuli, such as sucking or grasping.