The Increase in the Built Environment in Preindustrial Societies Contributed

question 63

Multiple Choice

The increase in the built environment in preindustrial societies contributed to a higher living standard, primarily because of

• A) centralization of power.
• B) specialization of labor.
• C) new ideology.
• D) improved communication.

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Definitions:

Corrective Tax

A tax designed to encourage or discourage certain behaviors to correct for the effects of externalities.

Socially Optimal

A state of resource allocation that is most beneficial for society as a whole.

Equilibrium Outcome

The state in a market where supply equals demand, and there is no external pressure to change the price or quantity of goods and services.

Positive Externalities

Benefits that are enjoyed by a third-party or society at large as a result of an economic activity, without them directly paying for it.