Consider a Good That Generates External Benefits and Another That

question 41

Multiple Choice

Consider a good that generates external benefits and another that generates external costs. A competitive market economy would tend to produce:

• A)too much of both the goods relative to the social optimum of each good.
• B)too little of both the goods relative to the social optimum of each good.
• C)too much of the good that generates external benefits and too little of the good that generates external costs relative to the social optimum of each good.
• D)too little of the good that generates external benefits and too much of the good that generates external costs relative to the social optimum of each good.
• E)the same amount of both the goods as the social optimum of each good.

Understand the relationship between probabilities and areas under the normal curve.

Recognize the significance of the total area under the normal curve being equal to 1.

Identify and describe the standard normal distribution and its properties.

Understand the concept of a random variable being "standardized".

---

Definitions:

Financial Health

A measure of the financial stability and viability of an individual, organization, or economy, often assessed through factors like liquidity, debt levels, and profitability.

Market Share

The percentage of total sales or revenue within an industry generated by a particular company, indicating the company's strength in the market relative to its competitors.

Cost Efficiency

The optimization of resources to ensure the best possible output for the least amount of input, emphasizing minimal waste of resources.

Operating Objectives

Specific, measurable goals that an organization aims to achieve in its daily operations to ensure efficiency and success.