The Existence of Externalities in a Market Implies That

question 106

Multiple Choice

The existence of externalities in a market implies that:

• A)resources are being used efficiently.
• B)there is no other allocation of resources that would make society as a whole better off.
• C)consumers cannot be excluded from consuming the good once it is provided.
• D)resources are not being used in their highest valued activity.
• E)the societal welfare as a whole is maximized.

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Definitions:

Cultural Personality

The collective personality characteristics and traits that are prevalent within a specific culture.

Individualistic

Refers to a social theory favoring freedom of action for individuals over collective or state control.

Power Distance

A cultural dimension that reflects the extent to which individuals in a society accept that power is distributed unequally.

Adoption Studies

Research methods in behavioral genetics that compare the traits of adopted children to those of their adoptive and biological parents to understand genetic and environmental influences.