When External Costs Are Present in a Market

question 100

Multiple Choice

When external costs are present in a market,

• A) less of the good will be produced than the amount consistent with economic efficiency.
• B) more of the good will be produced than the amount consistent with economic efficiency.
• C) the amount of the good produced will be equal to the amount consistent with economic efficiency.
• D) corresponding external benefits are always generated.

Apply knowledge of perceptual phenomena to explain illusions and common perceptual errors.

Understand the nature and formation of agency relationships.

Distinguish between different types of agency relationships and their implications.

Grasp the legal principles surrounding the creation of agency through appearance, ratification, and agreement.

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Definitions:

Boundary Work

Activities undertaken by social groups to create, maintain, or modify the divisions and distinctions that define and separate them from others, often based on race, ethnicity, class, or profession.

Racial Relations

The interactions and relationships between people of different racial backgrounds, including the dynamics of power, prejudice, and cooperation.

Exclusivity

A policy or situation where certain services, products, or privileges are restricted to a specific group or individual.

Inclusivity

The practice or policy of including people who might otherwise be excluded or marginalized, such as those who have been discriminated against because of their race, gender, or disability.