If a Negative Externality Is Associated with the Sale of Wood

question 7

True/False

If a negative externality is associated with the sale of wood stoves, then the marginal private cost of those stoves is less than their marginal social cost.

---

Definitions:

Parasympathetic Nervous

Part of the autonomic nervous system that promotes relaxation, digestion, and restoration of energy.

Severed Spinal Cord

A complete cut or transection of the spinal cord, resulting in a loss of communication between the brain and the body parts below the injury level, often leading to paralysis.

Knee-Jerk Response

An immediate, automatic reaction to a situation, without taking the time to think through the consequences.

Botulin Poisoning

A serious illness caused by botulinum toxin, which can result in muscle paralysis and is often linked to improperly preserved or canned food.