An Externality

question 258

Multiple Choice

An externality

• A)results in an equilibrium that does not maximize the total benefits to society.
• B)causes demand to exceed supply.
• C)strengthens the role of the "invisible hand" in the marketplace.
• D)affects buyers but not sellers.

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Definitions:

Ability to See

A physiological function that allows organisms to interpret electromagnetic wavelengths from the environment, commonly known as vision.

Humans

Intelligent, bipedal species known for advanced communication, social structures, and ability to create and manipulate the environment.

Retinal System

The part of the eye responsible for converting light into neural signals, allowing for the perception of visual images.

Cone Vision

The visual perception enabled by cone cells in the retina of the eye, allowing for color vision and detailed vision in bright light conditions.