<u>TRUE.</u>
The limbic system is a system of nerves inside the brain responsible for controlling basic emotions and drives. Pain and strong emotions act through the limbic system activating sympathetic centers within the hypothalamus. Consequently, it sends signal to the respiratory centers which modulates respiratory rate and depth.
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Answer: Externalities are side effects (good or bad) that occur when a person or a company performs an activity and does not assume all the costs of it, or all the benefits that could be reported. In this way we can distinguish:
Negative externality: Arises when not all the costs of a negative effects are assumed. In these cases, a social cost is generated, since it is the whole society that suffers the consequences of its actions. And the market price does not collect this cost.
Positive externality: Arises from a positive effect that is not reported as a benefit. An example of positive externality that we can mention is scientific research, from which society in general benefits. In these cases, market place do not reflect the real benefits.
De Beers
De Beers enjoyed dominant position and control of the
diamond industry. As a result, it held control of market supply and demand
dynamics and drove the diamond prices. This was as a result of massive diamond
discovery in South Africa.