If the Marginal Social Cost of Producing a Good Exceeds

question 105

Multiple Choice

If the marginal social cost of producing a good exceeds the marginal private cost,then _____

• A)the quantity of the good being produced is too less.
• B)the price charged for the good is too high.
• C)the good produces a positive externality.
• D)the good produces a negative externality.
• E)social welfare is likely to increase by producing more of the good.

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Definitions:

Levels-of-processing Model

A cognitive psychology theory that suggests memory retention of information is influenced by the depth of processing, with deeper levels of analysis producing more durable memory.

Deeper Level

Indicates an analysis or understanding that goes beyond the surface to understand underlying meanings or principles.

Shallower Level

A term that could refer to understanding or processing something at a more superficial or less complex level.

Maintenance Rehearsal

A cognitive strategy that involves repetitively reviewing information to retain it in short-term memory.