In Markets with Externalities or Public Goods

question 32

Multiple Choice

In markets with externalities or public goods,

• A)private benefits exceed social benefits.
• B)private costs exceed social costs.
• C)the private costs and benefits that decision makers face diverge from the social costs and benefits.
• D)the private costs and benefits that decision makers face are the same as the social costs and benefits.

---

Definitions:

Hermann Ebbinghaus

A German psychologist known for his pioneering work in the study of memory, including the discovery of the forgetting curve and the spacing effect.

Forgetting

The loss of information from long-term memory, reflecting a failure in either storing, retaining, or recalling the information.

Tip-of-the-Tongue Phenomenon

A common cognitive condition where an individual temporarily cannot recall a word or name but has a strong sense of its existence and feels that retrieval is imminent.

Eidetic Imagery

The ability to recall images, sounds, or objects in memory with high precision and detail, often referred to as photographic memory.