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:

Delta Waves

Slow brain waves associated with deep sleep and unconsciousness.

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep.

REM Sleep

A phase of sleep characterized by rapid eye movement, increased brain activity, vivid dreams, and temporary muscle paralysis.

Non-REM Sleep

A period of sleep that includes stages 1 through 3, characterized by gradual decreases in brain activity and physiological arousal.