When There Are Significant External Costs Associated with Its Production

question 155

Multiple Choice

When there are significant external costs associated with its production, the market produces ______ of that good.

• A) too little
• B) too much
• C) just the right amount
• D) an unknown amount

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Definitions:

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans tend to have.

Free Will

The concept that humans have the ability to make choices that are not predetermined by past events, genetics, or conditioning.

Rationality

The quality of being based on or in accordance with reason or logic.

Cognitive Complexity

An individual's ability to understand and process multiple and detailed aspects of information simultaneously.