If Production of a Good Creates External Benefits, a Competitive

question 45

Multiple Choice

If production of a good creates external benefits, a competitive market will likely produce

• A) less output than would maximize profit.
• B) more output than would maximize profit.
• C) less output than is efficient.
• D) more output than is efficient.

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Definitions:

Exuberant

Filled with or characterized by a lively energy and excitement.

Amygdala

A component of the brain's limbic system, involved in processing emotions, fear responses, and memory formation.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, crucial for decision making, social behavior, and personality expression.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).