If a Nation Protects an Industry Because It Believes That

question 77

Multiple Choice

If a nation protects an industry because it believes that there are positive externalities in the production process, it is asserting that the free market will

• A) produce less than is optimal from society's point of view.
• B) produce more than is optimal from society's point of view.
• C) produce the correct amount but charge too high a price.
• D) produce the correct amount but charge too low a price.

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Definitions:

Risky Behavior

Involves actions that can potentially harm an individual or others, often characterized by the disregard for negative consequences.

Vicariously Experienced

Refers to learning or feeling something through the experiences of another person, rather than through direct personal experience.

Social Cognitive Theory

A theory in psychology that posits learning occurs in a social context with a dynamic and reciprocal interaction of the person, environment, and behavior.

Imitate Violence

The act of copying or mimicking aggressive actions seen in others, often influenced by media or environment.