-What Would Happen in a Free Market System When Production

question 105

Multiple Choice

-What would happen in a free market system when production of a good generates negative externalities?

• A) There is a shortage of the good.
• B) There is a surplus of the good.
• C) The equilibrium quantity of the good is less than the efficient amount.
• D) The equilibrium quantity of the good is more than the efficient amount.

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Definitions:

Upper Limb

Refers to the region in a human that extends from the deltoid region up to and including the hand.

Draining Blood

The process of removing blood from the body, typically done for medical reasons such as to relieve pressure from a hematoma or in therapeutic phlebotomy.

Diastolic Pressure

The lower number in a blood pressure reading, representing the pressure in the arteries when the heart rests between beats.

Systolic Pressure

The highest blood pressure measured in the arteries during the contraction phase of the heart cycle.