Examlex
Mrs.Jackson CANNOT form new memories based on her experiences.Mr.LoPresti CANNOT seem to find his way around his city anymore.Which of the following best describes the brain damage each of these patients has probably suffered?
Socially Optimal
A condition or outcome that maximizes societal welfare, taking into account all costs and benefits to society as a whole.
Positive Externalities
Benefits that occur from a transaction or activity to third parties who are not directly involved in the transaction or activity.
External Costs
Costs of a transaction or activity that affect parties who did not choose to incur that cost and are not reflected in market prices, often necessitating government intervention.
External Benefits
The positive effects of a transaction or an activity on an uninvolved third party or the society at large, which are not reflected in the market prices.
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