If the Social Cost of Producing a Good or Service

question 76

Multiple Choice

If the social cost of producing a good or service exceeds the private cost

• A)a positive externality exists.
• B)the sum of consumer surplus and producer surplus is maximized.
• C)the market achieves economic efficiency.
• D)a negative externality exists.

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Definitions:

Single Trait

Refers to focusing on one characteristic feature of an individual or system for study or analysis.

Normal Curve

A symmetrical, bell-shaped curve that describes the distribution of many types of data; most scores fall near the mean (about 68 percent fall within one standard deviation of it) and fewer and fewer near the extremes. Also called a normal distribution.

Standardization

Defining uniform testing procedures and meaningful scores by comparison with the performance of a pretested group.

Independent Intelligences

A theory suggesting that intelligence is not a single ability but comprises multiple independent abilities.