If Some Activity Creates External Benefits as Well as Private

question 71

Multiple Choice

If some activity creates external benefits as well as private benefits, then economic theory suggests that the activity ought to be

• A) taxed.
• B) prohibited.
• C) subsidized.
• D) left alone.

---

Definitions:

Delusions

Strongly held false beliefs not influenced by logical reasoning or explained by a person's cultural context.

Illusions

Perceptual experiences that misrepresent physical stimuli, leading to incorrect perceptions of reality.

Hallucinations

Perceptions in the absence of external stimuli that have a compelling sense of reality, typically involving hearing or seeing things that aren't there.

Enlarged Ventricles

A condition where the chambers of the heart or brain (ventricles) are increased in size, which can impair their function.