When an External Cost Associated with the Production of Some

question 30

Multiple Choice

When an external cost associated with the production of some good has been internalized,it means that

• A)the opportunity cost of production is passed on to the consumer.
• B)the private cost of production is borne by the producer.
• C)the external costs are incorporated into private decision making.
• D)the consumer is bearing the net social benefits imposed by the producer.
• E)the firm is ignoring social costs.

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Definitions:

Lesioning

A technique in neurological and psychological studies where specific brain areas are deliberately damaged or removed to study their function.

Electrical Stimulation

The use of electrical impulses to stimulate nerves or muscles for therapeutic purposes.

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating voluntary and involuntary actions.

Endocrine System

A system of glands that secrete hormones into the bloodstream to regulate the body's growth, metabolism, and sexual development and function.