Consider a Setting in Which There Is a Negative Externality,but

question 15

Multiple Choice

Consider a setting in which there is a negative externality,but no positive externality.It follows that

• A) the market outcome is inefficient.
• B) the market outcome is efficient.
• C) MSC > MPC
• D) MPC > MSC
• E) a and c

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Definitions:

Preconscious Level

Part of the mind that contains thoughts and feelings not currently in consciousness but can be readily brought to consciousness.

Problematic Emotional Reactions

Emotional responses that are excessive or inappropriate to situations, often leading to difficulties in functioning.

Catastrophic Thinking

Unrealistic appraisals of stress that exaggerate the magnitude of one’s problems.

Albert Ellis

An influential psychologist known for developing Rational Emotive Behavior Therapy (REBT), a form of cognitive-behavioral therapy.