If an External Cost Arises in the Production of Paint

question 78

Multiple Choice

If an external cost arises in the production of paint:

• A) the free market will not produce enough paint
• B) too much paint will be produced
• C) painting competitions should be organised in local schools to use up the excess paint
• D) the government should subsidise the production of paint

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Definitions:

Utilitarianism

A moral theory that suggests the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Deontology

An ethical theory that emphasizes duty and rules over the outcomes of actions.

Hedonism

A philosophical theory or approach that argues that pleasure and happiness are the primary or most important intrinsic goods and the aim of human life.

Pragmatism

A philosophical approach that assesses the truth of meaning of theories or beliefs in terms of the success of their practical application.