For Both Public Goods and Common Resources, an Externality Arises

question 21

Multiple Choice

For both public goods and common resources, an externality arises because:

• A)something of value has no price attached to it
• B)the goods are undervalued by society
• C)the social optimum level of output is greater than market equilibrium
• D)all of the above are true

---

Definitions:

Evolutionary Theories

A set of propositions aimed at explaining how and why certain behaviors or physical traits have developed over time through the process of natural selection.

Cannon-Bard Theory

A theory of emotion that suggests emotions and bodily changes occur simultaneously rather than sequentially, with emotional experiences resulting from the brain's interpretation of bodily responses to stimuli.

James-Lange Theory

A psychological theory suggesting that emotions result from physiological reactions to events.

Autonomic Arousal

The activation or response of the autonomic nervous system, controlling involuntary body functions and often linked to stress and emotions.