If Production of a Good Creates an External Cost, the Amount

question 124

Multiple Choice

If production of a good creates an external cost, the amount of output where the marginal social benefit equals the marginal private cost is

• A) inefficient.
• B) inequitable.
• C) unattainable.
• D) efficient.

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Definitions:

Cerebellum

Part of the brain at the back of the skull that is responsible for body movements, balance, and coordination.

Amygdala

A part of the brain's limbic system involved in processing emotions, such as fear and pleasure.

Self-concept

An individual's perception of themselves, encompassing beliefs, feelings, and thoughts about one's abilities and characteristics.

Social Comparison

The tendency to compare and judge one’s abilities, achievements, and behaviors in relation to others.