When the Free Market Produces Less Than the Socially Optimal

question 181

Multiple Choice

When the free market produces less than the socially optimal quantity of a good,

• A)negative externalities must be present
• B)marginal social cost must exceed marginal private cost
• C)marginal private benefit must exceed marginal social benefit
• D)the government should tax production of the good
• E)there has been a market failure

Assess the impact of individual actions and group membership on the collective behavior of mobs, crowds, and other assemblies.

Understand the concept and factors leading to deindividuation.

Explain the dynamics of crowd behavior and theories associated with it.

Identify ways to reduce dangerous levels of overcrowding.

---

Definitions:

Misapplication Funds

Refers to the wrongful use or allocation of funds that were intended for a specific purpose.

Partnership Relationship

The legal and operational relationship existing between partners in a business venture, governed by a partnership agreement.

Obligations

Duties or responsibilities imposed by law, contract, or social norms.

Dissolved

The process of legally ending the existence of an entity such as a corporation.