If There Are No Externalities, a Competitive Market Achieves Economic

question 161

Multiple Choice

If there are no externalities, a competitive market achieves economic efficiency.If there is a negative externality, economic efficiency will not be achieved because

• A)too little of the good will be produced.
• B)too much of the good will be produced.
• C)a deadweight loss will occur that is equal to the area under the demand curve for the good.
• D)economic surplus is maximized.

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Definitions:

Delirium Tremens

A severe form of alcohol withdrawal featuring sudden and severe mental or nervous system changes.

Motivational Interview

A counseling approach that helps individuals resolve ambivalent feelings and insecurities to find the internal motivation they need to change their behavior.

Delirium Tremens

A severe form of alcohol withdrawal involving sudden and severe mental or nervous system changes.

Alcohol-Induced Psychosis

A state of psychosis triggered by excessive consumption of alcohol, characterized by hallucinations and delusions.