When There Is an Externality in a Market

question 214

Multiple Choice

When there is an externality in a market,

• A)the externality will move the market to an economically efficient equilibrium.
• B)the externality will cause the market price to be less than or greater than the equilibrium price.
• C)the government should use price controls to enable the market to reach equilibrium.
• D)government intervention may increase economic efficiency.

---

Definitions:

Heart Rate

The rate at which the heart beats within a specific time period, often indicated in beats per minute (bpm).

Starling Law

A principle in physiology stating that the force of the heart's contraction is directly proportional to its initial length, influencing the stroke volume.

Stroke Volume

The amount of blood pumped by the left ventricle of the heart in one contraction, a key component in determining cardiac output and vascular health.

Baroreceptor Reflex

A reflex mechanism that helps maintain blood pressure stability by adjusting heart rate and blood vessel diameter in response to changes in blood pressure.