If Either the Production or Consumption of a Good Generates

question 121

Multiple Choice

If either the production or consumption of a good generates an external cost, then the:

• A)social demand curve will lie to the right of the private demand curve.
• B)social marginal cost curve will lie to the right of the private marginal cost curve.
• C)social marginal cost curve will lie to the left of the private marginal cost curve.
• D)social demand for the good will equal zero.

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Definitions:

Psychosocial Crisis

A conflict experienced during different stages of life that requires the individual to adapt to new challenges and roles, as theorized by Erik Erikson.

Trust Versus Mistrust

A stage in Erik Erikson's theory of psychosocial development where infants learn whether or not they can trust the world to satisfy their basic needs.

Social Referencing

“Reading” emotional cues in others to help determine how to act in a particular situation.

Emotional Cues

Nonverbal signs that convey emotions, such as facial expressions, tone of voice, and posture.