Compared to Ideal Economic Efficiency, When the Production of a Good

question 148

Multiple Choice

Compared to ideal economic efficiency, when the production of a good generates external benefits, competitive markets will likely result in an output that is too

• A) large and a price that is too high.
• B) large and a price that is too low.
• C) small and a price that is too high.
• D) small and a price that is too low.

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Definitions:

Psychoanalysis

A therapeutic technique and theory of psychological disorders, emphasizing unconscious conflicts and childhood experiences.

Cognitive Therapies

Psychological treatments that focus on changing faulty or irrational thinking patterns, beliefs, and attitudes.

Systematic Desensitization

A therapeutic method used to cure phobias and other behavior problems involving anxiety, by gradual exposure to the feared object or situation in a controlled environment.

Token Economy

An operant conditioning procedure in which people earn a token for exhibiting a desired behavior and can later exchange the tokens for privileges or treats.