Use the Following to Answer Questions

question 70

Multiple Choice

Use the following to answer questions:
Figure: Correcting for Market Failure
-(Figure: Correcting for Market Failure) There is an external cost in the market illustrated in the figure Correcting for Market Failure. Economists argue that in an unregulated private market, _____ is produced. In the figure, the supply curve (S₁) reflects _____ marginal cost.

• A) too little; private
• B) too much; private
• C) too much; external
• D) too little; external and private

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Definitions:

Cannon-Bard Theory

A theory of emotion that proposes that emotions and bodily changes occur simultaneously, in contrast to theories that suggest emotions are a result of bodily reactions.

James-Lange Theory

A theory suggesting that emotions occur as a result of physiological reactions to events.

Schachter-Singer Theory

A theory of emotion that states emotions are determined by physiological arousal and the cognitive interpretation of that arousal.

Binge Eating

The consumption of large quantities of food in a short period of time, often associated with a feeling of loss of control over eating.