Which of These Statements Is TRUE in the Case of Externalities

question 123

Multiple Choice

Which of these statements is TRUE in the case of externalities?
I. In the case of externalities, prices do not reflect the true cost or benefit of the product.
II. In the case of externalities, prices sometimes send the wrong signals about a market.
III. Externalities discourage new producers from entering the industry since the price always remains about the efficient price.

• A) I and II only
• B) I and III only
• C) II and III only
• D) I, II, and III

Distinguish between distal and proximal stimuli and their roles in perception.

Grasp the concept of size constancy in perception.

Acknowledge the cognitive processes involved in perception, including internal and external information integration.

Understand the concept of affordances in direct perception.

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Definitions:

Economic Development

Economic Development involves efforts that seek to improve the economic well-being and quality of life for a community by creating and retaining jobs and supporting or growing incomes and the tax base.

Population Growth

The increase in the number of individuals in a population over time.

Investment Spending

Expenditures on new capital assets by businesses and the government, aiming to increase future productive capacity.