Free Markets Produce Too Little Output When _____

question 44

Multiple Choice

Free markets produce too little output when _____

• A)negative externalities exist.
• B)positive externalities exist.
• C)decisions are based on private marginal benefits.
• D)production uses variable technology.
• E)the resource is exhaustible.

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Definitions:

Chemical

A substance produced by or used in a chemical process, characterized by having a specific molecular composition.

Absolute Sensory Threshold

Defined as the minimum intensity of a stimulus that is needed for the stimulus to be detected at least 50% of the time.

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.

Subliminal

Referring to stimuli or messages presented below the threshold of conscious perception, capable of influencing thoughts, feelings, or actions.