There Is an Externality Present Only When

question 13

Multiple Choice

There is an externality present only when

• A) private costs diverge from social costs.
• B) private benefits diverge from social benefits.
• C) private costs or benefits diverge from social costs or benefits.
• D) private costs equal social costs.

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Definitions:

Myelin

A fatty substance that surrounds and insulates nerve fibers, increasing the speed at which electrical impulses are conducted.

Conduction Speed

The rate at which an electrical impulse travels along a nerve or muscle fiber.

Autoimmune Disease

Illness resulting from the loss of the immune system’s ability to discriminate between foreign pathogens in the body and the body itself; abnormal immune response by the body against substances and tissues normally present in the body.

Genetic Risk Factors

Hereditary elements that increase the likelihood of developing certain diseases or conditions.