If the External Costs of Production Are Not Taken into Account

question 183

Multiple Choice

If the external costs of production are not taken into account, then production will

• A) be less than socially desirable.
• B) be more than socially desirable.
• C) be the same since only prices are affected by externalities.
• D) cease.

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Definitions:

Difference Threshold

The minimal detectable difference needed to discriminate between two stimuli.

Auditory Convergence

The integration of sound information from both ears at certain points in the auditory pathway, enhancing sound localization and processing.

Refractory Threshold

The refractory threshold is the period following an action potential during which a neuron is incapable of firing another action potential or the threshold is significantly increased.

Difference Threshold

The smallest detectable difference between two stimuli that a person can sense at least half the time.