For a Good Whose Production Creates an External Cost,the Efficient

question 28

Multiple Choice

For a good whose production creates an external cost,the efficient quantity of output is

• A) where the market demand curve and the market supply curve intersect.
• B) where the marginal social cost curve and marginal benefit curve intersect.
• C) as low as possible.
• D) zero.
• E) the amount of production so that the marginal social benefit exceeds the marginal social cost by as much as possible.

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Definitions:

Nonverbal Cues

Body language and other physical behaviors used to convey messages or emotions without the use of words.

Nuclear Family

A family unit consisting of two parents and their children living together as a single household.

Adopted Children

Children who have been legally taken into a family different from their birth family, to be raised as a member of the adoptive family.

Skip Generation Family

A family structure where grandparents are the primary caregivers of grandchildren, with the parents being absent or only minimally involved.