In Order to Bring a Market to Its Efficient Outcome

question 14

Multiple Choice

In order to bring a market to its efficient outcome when a negative externality is present,the government could:

• A)limit total consumption to the efficient quantity.
• B)tax the affected party the value of the external cost.
• C)limit the price to the efficient level.
• D)Any of these would bring the market to its efficient level.

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Definitions:

Subcortical Areas

Regions of the brain located below the cerebral cortex, involved in various functions including movement, sensory processing, and emotion regulation.

Temperament

Inherent aspects of an individual's personality, such as their tendency towards moodiness or calmness, which are often evident from infancy.

Evolutionary Theories

Theories that explain various psychological traits, behaviors, and mental processes as adaptations or functions of natural selection and evolutionary history.

Environmental Stimuli

External factors or conditions that can elicit a response from organisms, ranging from temperature changes to social interactions.