An Externality Exists in the Production of a Good or Service

question 45

Multiple Choice

An externality exists in the production of a good or service when:

• A) the marginal cost to society of consuming an extra unit of a good equals the marginal social benefit.
• B) resources are allocated such that no one can be made better off without making someone
• C) the marginal social cost differs from the marginal private cost of production.
• D) markets are allocatively and productively efficient.

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Definitions:

Dissociative Disorders

A collection of psychological conditions marked by a detachment among cognition, self-awareness, memory, and personal identity.

Eidetic Image

A vivid and detailed mental image, often referred to as a "photographic memory."

Déjà Vu

A feeling of having already experienced the present situation.

Jamais Vu

The sensation of seeing or experiencing something for the first time, despite logically knowing you have encountered it before.