Suppose That a Steel Factory Emits a Certain Amount of Air

question 299

Multiple Choice

Suppose that a steel factory emits a certain amount of air pollution, which constitutes a negative externality. If the market does not internalize the externality,

• A)the supply curve would adequately reflect the marginal social cost of production.
• B)consumers will be required to pay a higher price for steel than they would have if the externality were internalized.
• C)the market equilibrium quantity will not be the socially optimal quantity.
• D)producers will produce less steel than they otherwise would if the externality were internalized.

Understand the basic elements required for a valid contract, including offer, acceptance, and consideration.

Identify and describe different types of contracts (bilateral, unilateral).

Recognize the legal implications of breaching a contract.

Understand the distinction between intellectual property and other forms of property.

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Definitions:

Postconventional Level

A stage of moral development in which individuals base their moral judgments on universal ethical principles and personal conscience.

Capital Punishment

The legally authorized killing of someone as punishment for a crime.

Kohlberg

Lawrence Kohlberg was a psychologist best known for his theory of moral development, which proposes that moral reasoning has six developmental stages.

Baumrind

A psychologist known for her research on parenting styles, identifying three main types: authoritative, authoritarian, and permissive.