When Production of a Good Provides External Benefits, There Will

question 167

Multiple Choice

When production of a good provides external benefits, there will be

• A) too few resources devoted to its production.
• B) too many resources devoted to its production.
• C) the optimal amount of resources devoted to its production.
• D) abnormally high profits earned by producers of the good.

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Definitions:

Intentional Torts

Wrongful acts committed with the intention of causing harm to another, such as assault, battery, and defamation.

Negligence

The failure to exercise the level of care that someone of ordinary prudence would have exercised under the same circumstances, often leading to harm or damage.

Nominal Damages

A small amount of money awarded to a plaintiff in a lawsuit to recognize a legal right was violated, without substantial loss or damage occurring.

Trivial Damages

Refers to minimal or insignificant compensation awarded when a legal wrong has occurred, but the plaintiff has not experienced substantial harm.