If There Are Negative Externalities in Production or Consumption, Competitive

question 27

True/False

If there are negative externalities in production or consumption, competitive equilibrium is unlikely to be Pareto efficient but positive externalities enhance the efficiency of the market.

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Definitions:

Catatonic Posturing

An abnormality of motor behavior marked by voluntary assumption and maintenance of inappropriate or bizarre postures.

Standing

The act of being in an upright position on the feet.

Schizoaffective Disorder

A mental health condition characterized by a combination of schizophrenia symptoms, such as delusions or hallucinations, and mood disorder features, such as depression or mania.

Negative Symptoms

In the context of psychiatric conditions, particularly schizophrenia, symptoms that reflect decreases or deficits in normal emotional responses, motivation, or social behaviors.