When a Good Generates a Negative Externality in the Market

question 60

Multiple Choice

When a good generates a negative externality in the market:

• A) society's scarce resources are allocated efficiently.
• B) its marginal social cost is greater than its marginal private cost.
• C) the good's price accurately reflects the cost of the externality.
• D) the quantity demanded of the good will be equal to zero.

Understand the impact of narrowly defined business concepts on organizational growth and the importance of broad strategic thinking.

Comprehend how organizational culture contributes to uniting employees around common goals and improving both employee and patient/customer satisfaction.

Understand the importance and components of effective communication in leadership to inspire and take responsibility.

Recognize the role of personal liking and listening in persuading and understanding others.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action and stress, triggering the "fight or flight" response.

Digestion

The process by which the body breaks down food into smaller components, ultimately to be absorbed into the bloodstream for nutrition.

Pupil Dilation

The expansion of the pupil, influenced by light exposure, emotional states, and arousal levels.

Nervous System

The complex network of nerves and cells that transmits signals between different parts of the body.