Consider the Production of a Private Good,such as a Car,and

question 159

Multiple Choice

Consider the production of a private good,such as a car,and a common-resource good,such as fish.What do the markets for these two goods have in common?

• A) The quantity of output produced is inefficiently low.
• B) The quantity of output produced is inefficiently high.
• C) Both create a positive externality.
• D) Both markets are likely to arrive at the social optimum without government intervention.
• E) The price of both goods is inefficiently high.

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Definitions:

Secondary Conditioning

A process in classical conditioning where a stimulus that becomes a conditioned stimulus through association with another conditioned stimulus elicits the same conditioned response.

Cognitive-Affective Personality System (CAPS)

A theory that emphasizes the importance of situational variables and cognitive processes in understanding personality.

Cognitive-Affective Personality System (CAPS)

A psychological theory that emphasizes the interaction of cognitive and emotional processes in shaping personality.

Personality System

The organized set of characteristics, traits, and behaviors that uniquely define how a person interacts with the environment and others.