When a Society Cannot Produce All the Goods and Services

question 298

Multiple Choice

When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing

• A) scarcity.
• B) surpluses.
• C) inefficiencies.
• D) inequalities.

Identify examples of government policies aimed at addressing externalities.

Recognize the social costs associated with pollution as part of negative externalities.

Understand the concept of technology spillover and its classification as an externality.

Distinguish between command-and-control and market-based policies for correcting externalities.

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Definitions:

Largest Proportion

The biggest part or share when comparing amounts or sizes within a whole.

Initial Proletarianization

The early process of transforming agrarian or semi-feudal societies into industrial ones, where the mass of the population begins to receive wages for labor instead of living off the land.

Industrial Working Class

A socio-economic class comprised of individuals employed in industrial sectors, often involving manual labor and receiving wages for their services.

Craft Workers

Skilled laborers who produce goods or provide services with a particular expertise, often by hand or using traditional methods.