If There Are Both External Benefits and External Costs Associated

question 174

Multiple Choice

If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,

• A)​More than the efficient amount is being produced
• B)​Less than the efficient amount is being produced
• C)​the efficient amount is being produced
• D)​We do not know whether the efficient amount, or more or less, is being produced.

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Definitions:

Morality

Rules that differentiate between what is considered morally correct and incorrect conduct.

Psychological Egoism

The hypothesis positing that people are consistently driven by their own self-interest, even when their actions appear to be altruistic.

Ethical Egoism

A moral philosophy that posits individuals should act in ways that serve their own self-interest.

Ancient Societies

Civilizations or cultures that existed in the distant past, often characterized by their contributions to history, art, and knowledge.