Negative Externalities Lead Markets to Produce

question 185

Multiple Choice

Negative externalities lead markets to produce

• A)greater than efficient output levels and positive externalities lead markets to produce smaller than efficient output levels.
• B)smaller than efficient output levels and positive externalities lead markets to produce greater than efficient output levels.
• C)greater than efficient output levels and positive externalities lead markets to produce efficient output levels.
• D)efficient output levels and positive externalities lead markets to produce greater than efficient output levels.

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Definitions:

Federally-Funded

Financial support given by the federal government to support a wide range of projects and programs.

Experimental Realism

The extent to which study participants get so caught up in the procedures that they forget they are in an experiment.

Mundane Realism

The degree to which an experiment or research setting resembles the real-world scenarios it aims to replicate or study.

"Real World"

Term often used to refer to the practical, everyday life experiences and situations outside of controlled or theoretical environments.