Consider a Setting in Which There Is a Positive Externality,but

question 28

Multiple Choice

Consider a setting in which there is a positive externality,but no negative externality.The market outcome is __________________; government can bring about the ___________________ outcome if it sets a subsidy equal to the __________________.

• A) inefficient; efficient; MEB
• B) inefficient; efficient; MEC
• C) efficient; inefficient; MPC
• D) inefficient; efficient; MPB
• E) inefficient; efficient; MSB

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions (thoughts, beliefs, attitudes).

Conformity

The act of aligning one's attitudes, beliefs, or behaviors to match those of a group or social norm.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more contradictory beliefs, ideas, or values simultaneously.

Conflicting Behaviors

Actions or responses that are contradictory or opposed to one another, often causing confusion or internal conflict.