When There Exists a Negative Externality in Case of a Particular

question 36

Multiple Choice

When there exists a negative externality in case of a particular good and that is not reflected in the price:

• A)too little of that good is produced and consumed.
• B)too much of that good is produced and consumed.
• C)nothing of that is either produced or consumed.
• D)the government completely prohibits the production of such goods.
• E)the resources are allocated to their highest-valued activity.

---

Definitions:

Hilde Bruch

A psychiatrist and psychoanalyst known for her seminal work on eating disorders, particularly anorexia nervosa and obesity.

Bulimia Nervosa

An eating disorder characterized by binge eating followed by purging to prevent weight gain.

Cognitive-Behavioral Therapy

A type of psychotherapy that aims to change patterns of thinking or behavior to address psychological problems.

Maudsley Model

A family-based treatment for eating disorders that emphasizes the involvement of the patient's family in the recovery process.