Which of the Following Statements Is NOT True of External

question 223

Multiple Choice

Which of the following statements is NOT true of external benefits?

• A) External benefits lead to an underallocation of resources to the production of the good that has the external benefit.
• B) External benefits lead to a price in the market that is too high.
• C) External benefits lead to too few of the goods that have the external benefit being produced.
• D) External benefits are a good thing for the allocation of resources because people are getting something at no cost.

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Definitions:

Dementia

A category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, affecting daily functioning.

Lewy Body

Abnormal aggregates of protein that develop inside nerve cells, contributing to Parkinson’s disease, Lewy body dementia, and other disorders.

Pick Disease

A rare neurodegenerative disease that causes progressive destruction of nerve cells in the brain, leading to changes in behavior, personality, and ultimately severe dementia.

Korsakoff Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), most commonly due to alcohol misuse, characterized by memory loss and confabulation.