Suppose a Certain Good Provides an External Benefit

question 98

True/False

Suppose a certain good provides an external benefit. If the private cost of the last unit of the good that was produced is equal to the social value of that unit, then the sum of producer and consumer surplus is maximized.

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Definitions:

Inductive Punishing

A disciplinary method that involves explaining the consequences of a child's actions on others, promoting empathy and understanding.

Cognitive-developmental View

A perspective emphasizing the role of cognition in the development of human behavior and understanding.

Gender Typing

The process by which children learn the behaviors, interests, and abilities associated with being masculine or feminine in their culture.

Initiative

The ability to assess and initiate things independently, often seen as a leadership quality, or in child development, the stage where a child begins to assert control and power over their environment.