When Government Intervenes in the Production Process Because External Costs

question 205

Multiple Choice

When government intervenes in the production process because external costs exist, it typically attempts to shift the industry's

• A) demand curve to the right.
• B) demand curve to the left.
• C) supply curve to the right.
• D) supply curve to the left.

---

Definitions:

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his pioneering work in child development and his theory of cognitive development.

Cognitive Development

The formation and evolution of mental processes like recall, solving problems, and making choices, from early childhood, through the teen years, into maturity.

Egocentrism

The inability to differentiate between one's own perspective and someone else's perspective, often seen in early childhood development.

Animism

The belief that objects, places, and creatures all possess a distinct spiritual essence, prevalent in many indigenous religions.