When Production of a Good Creates an External Benefit

question 61

Multiple Choice

When production of a good creates an external benefit:

• A) there is a negative externality.
• B) too much of the good is being produced.
• C) there is a positive externality.
• D) it results in the tragedy of the commons.
• E) a governmental good is being produced.

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Definitions:

Electroencephalograph

An instrument that measures and records the electrical activity of the brain, known as an EEG.

Positron Emission Tomography

A type of imaging test that uses a radioactive substance to look for disease in the body, especially in the brain.

Electrical Stimulation

The use of electrical impulses to induce a muscular contraction or stimulate nerves and tissues for therapeutic purposes.

Computerised Tomography

A diagnostic imaging procedure using a series of computer-generated x-rays to create detailed cross-sectional images of the body.