Oftentimes, the Socially Optimal Quantity for a Product That Imposes

question 131

Multiple Choice

Oftentimes, the socially optimal quantity for a product that imposes external costs on the society is not zero, but something greater than zero. This is because completely eliminating the externality would involve:

• A) A much greater marginal benefit than marginal cost
• B) A much greater marginal cost than marginal benefit
• C) Having shortages in the market
• D) Having surpluses in the market

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Definitions:

Sexual Attachment

The emotional bond that forms through sexual activity, which can play a significant role in interpersonal relationships.

Electra Complex

A concept in psychoanalytic theory describing a girl's psychosexual competition with her mother for possession of her father.

Oedipus Complex

A psychoanalytic theory by Freud that suggests a child's unconscious desire for the opposite-sex parent and jealousy toward the same-sex parent.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.