A Good Which Has Social Costs That Exceed Private Costs

question 252

Multiple Choice

A good which has social costs that exceed private costs has a price

• A) equal to marginal social cost.
• B) that is too low.
• C) that is too high.
• D) that is inefficient because price exceeds marginal social cost.

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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.

Brain Damage

Injury to the brain that impairs its functions, potentially leading to cognitive, physical, emotional, or behavioral impairments.

Limbic System

A sophisticated network of neural pathways and brain regions, located near the cortex's periphery, that is responsible for basic emotional responses and drives, focusing on areas related to mood and instinct.

Marijuana Usage

The act of consuming marijuana, a psychoactive drug from the Cannabis plant, used both medically and recreationally.