All of the Following Statements Are True Except

question 2

Multiple Choice

All of the following statements are true except:

• A)An externality is a cost or a benefit that affects someone other than the seller or the buyer of a good.
• B)When an electric utility does not consider the cost of pollution when it decides how much power to produce,the result is overproduction.
• C)An electric utility creates an external cost by burning coal.
• D)All externalities create overproduction.
• E)An external cost creates overproduction.

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Definitions:

Cognitive Responses

Mental processes and reactions, such as thoughts and interpretations, in response to stimuli or situations.

Lethargic

A state of sluggishness, fatigue, or lack of energy, often indicative of underlying health conditions.

Preoccupied

Engrossed in thought or concerns, often to the point of not being aware of one's surroundings.

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.