When There Is a Positive Externality Associated with the Watering

question 203

Multiple Choice

When there is a positive externality associated with the watering of one's lawn, the free market results in:

• A) not enough lawn watering.
• B) too much lawn watering.
• C) the socially optimal level of lawn watering.
• D) people watering each other's lawns.
• E) government subsidies for lawn watering.

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Definitions:

Cochlea

The coiled structure in the inner ear that contains the basilar membrane.

Olfactory Receptor Neurons

Specialized nerve cells located in the nasal cavity that detect chemical substances in the air, leading to the sense of smell.

Olfactory Epithelium

A mucous membrane at the top of the nasal cavity; contains the olfactory receptor neurons that respond to airborne molecules called odorants.

Glomeruli

Sites in the brain’s olfactory bulb where signals from the smell receptors converge.