​A Rain Barrel Is a Container That Captures and Stores

question 399

Multiple Choice

​A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. As a result, rain barrels benefit the community through water conservation. If homeowners do not consider this external benefit of rain barrels, then

• A)​the socially optimal quantity of rain barrels will be larger than the equilibrium quantity of rain barrels.
• B)​the socially optimal quantity of rain barrels will be smaller than the equilibrium quantity of rain barrels.
• C)​the socially optimal price of rain barrels will be lower than the equilibrium price of rain barrels.
• D)the market for rain barrels would benefit from a tax on rain barrels.

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Definitions:

Motivational Arousal

The process of being internally stimulated to perform an action or behavior due to personal drive or desire.

Physiological Needs

Basic life needs required for human survival, such as air, water, food, shelter, and sleep, according to Maslow's hierarchy of needs.

Drive-Reduction Theory

A psychological concept proposing that the motivation of behavior is the reduction of drives, which are primarily biological needs that trigger arousal.

Aroused State

A condition of heightened physiological and psychological activity, with increased heart rate, alertness, and energy, often triggered by excitement or stress.