If People Took External Costs, Such as Pollution, into Consideration

question 66

Multiple Choice

If people took external costs, such as pollution, into consideration when deciding how much to consume of goods that cause externalities, they would:

• A)consume a socially non-optimal amount.
• B)not change their consumption behavior.
• C)consume more.
• D)consume less.

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Definitions:

Multiple Regression

A technique utilizing a series of predictor variables in statistics to predict the outcome of a specific response variable.

Independent Variables

Variables in a statistical model that are manipulated or selected by the researcher to determine their effect on the dependent variable.

Independent Variables

Factors in a study or simulation that are adjusted or classified to assess their impact on outcome measures.

Significance Level

A threshold within which the results of a statistical test are deemed statistically significant, often denoted as alpha (α), with common values like 0.05 or 0.01.