When There Exists a Negative Externality in Case of a Particular

question 36

Multiple Choice

When there exists a negative externality in case of a particular good and that is not reflected in the price:

• A)too little of that good is produced and consumed.
• B)too much of that good is produced and consumed.
• C)nothing of that is either produced or consumed.
• D)the government completely prohibits the production of such goods.
• E)the resources are allocated to their highest-valued activity.

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Definitions:

Chronic Low Self-Esteem

A long-standing and pervasive sense of negative self-worth or inadequacy, which affects an individual's overall mental health and quality of life.

Defensive Coping

A psychological strategy where an individual handles stress and threats by unconsciously denying or distorting reality.

Powerlessness

A state of feeling unable to control, influence, or effectively act in a situation, often leading to frustration and vulnerability.

Acute Mania

A phase of bipolar disorder characterized by an elevated mood, overactivity, rapid speech, and impulsive behavior.