If the Social Cost of Producing a Good or Service

question 76

Multiple Choice

If the social cost of producing a good or service exceeds the private cost

• A)a positive externality exists.
• B)the sum of consumer surplus and producer surplus is maximized.
• C)the market achieves economic efficiency.
• D)a negative externality exists.

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Definitions:

Dopamine

Neurotransmitter in the brain, excess amounts of which have been thought to cause schizophrenia.

Reuptake

Process in which a sending neuron reabsorbs some of the neurotransmitter in the synapse, decreasing the amount left in the synapse.

Cocaine

A powerful stimulant drug derived from the coca plant, known for its euphoric effects and high potential for addiction.

Hypersexuality

A condition characterized by excessive preoccupation with sexual fantasies, urges, or behaviors that may lead to distress or impairment in social, occupational, or other important areas of functioning.