If Positive Externalities Exist for a Good

question 317

Multiple Choice

If positive externalities exist for a good

• A) the private market produces too much of the good.
• B) the private market produces too little of the good.
• C) the private market produces the efficient quantity of the good.
• D) taxes on firms are imposed to decrease production of the good.

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Definitions:

Illness Anxiety

An excessive preoccupation or fear of having a serious illness despite medical reassurance and minimal or no physical symptoms.

Somatic Symptoms

Physical symptoms that can cause significant distress and may not have a detectable physical cause, often related to psychological conditions.

Voluntary Motor

Refers to muscle movements that are consciously controlled, typically involving coordination and purposeful actions.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a manual published by the American Psychiatric Association that classifies mental disorders.