Which of the Following Statements Is Not True

question 4

Multiple Choice

Which of the following statements is not true?

• A) If marginal social cost and marginal private cost are the same, any externality that exists will be positive.
• B) If marginal externality costs are not zero, externalities exist.
• C) An expansion of property rights to include air quality and scenic beauty would bring some private markets close to a socially optimal equilibrium.
• D) The existence of pollution as the byproduct of a production or exchange process indicates a market failure.
• E) When municipal water supplies have heavy concentration of agricultural chemicals, it is probable that agricultural output from the area is produced in quantities greater than the socially optimal level.

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Definitions:

Serotonin

A neurotransmitter involved in the regulation of mood, appetite, sleep, memory, and learning.

Norepinephrine

A neurotransmitter and hormone involved in the body's response to stress, also playing a key role in alertness and the fight-or-flight response.

Id

In psychoanalytic theory, the part of the personality that contains our primitive impulses such as sex, anger, and hunger, and operates on the pleasure principle.

Pleasure Principle

A concept in psychoanalytic theory referring to the instinctual seeking of pleasure and avoidance of pain to satisfy biological and psychological needs.