In a Certain City, the Local Government Regulates the Destruction

question 482

Multiple Choice

In a certain city, the local government regulates the destruction of historic buildings and provides tax breaks to owners of historic buildings who restore them. These government policies

• A)reflect the fact that restored historic buildings convey a positive externality.
• B)reflect the fact that the destruction of historic buildings conveys a positive externality.
• C)are likely to worsen the market failure that is associated with historic buildings and the restoration of such buildings.
• D)are likely to decrease the well-being of society as a whole.

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Definitions:

Social Phobia

A rephrased definition: A specific anxiety disorder characterized by a significant amount of fear in one or more social situations, causing considerable distress and impaired ability to function in at least some parts of daily life.

Agoraphobia

An anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help might not be available.

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms that may include chest pain, heart palpitations, shortness of breath, dizziness, or abdominal distress.

Bipolar Disorder

A psychological disorder marked by significant fluctuations in mood, ranging from periods of intense happiness (mania or hypomania) to profound sadness (depression).