When a Negative Externality Is Present in a Market,when a Quota

question 60

Multiple Choice

When a negative externality is present in a market,when a quota is imposed,it is:

• A)efficient,because the market consumes the efficient level.
• B)not efficient,because individuals' net benefit of the amount set by the quota are different.
• C)efficient,because the net benefit of everyone at the amount set by the quota is equal.
• D)not efficient,because the marginal cost outweighs the marginal benefit for too many consumers at the amount set by the quota.

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Definitions:

Configural Model

Asch’s Gestalt-based model of impression formation, in which central traits play a disproportionate role in configuring the final impression.

First Impressions

Initial judgments and perceptions formed about an individual upon meeting, which significantly influence future interactions.

Asch

Refers to Solomon Asch, a psychologist known for conducting experiments on conformity, demonstrating how social pressure can influence individual judgment.

Cognition

The cognitive activity of gaining information and comprehension via thinking, experiencing, and sensory perception.