Which of the following describes how a positive externality affects a competitive market?
A) The externality causes a difference between the private benefit from consumption and the social benefit.
B) The externality causes a difference between the private benefit from production and the social cost of production.
C) The externality causes quantity demanded to exceed quantity supplied.
D) The externality causes a difference between the social cost of production and the social cost of consumption.
Answer: A
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The time it takes for a policy to actually work is known as
A) inside lags. B) crowding out. C) fiscal policy. D) outside lags.
Budgets should be organized along line item budgets rather than program budgets in order to facilitate an evaluation of the effectiveness of government spending on an issue
a. True b. False
National health care programs are not as effective as they could be because:
A. patients are not receptive to utilization of modern medicine in most nations. B. many doctors in clinics do not have sufficient knowledge to properly diagnose patients. C. traditional Western medicine is largely untrusted in most parts of the developing world. D. health care providers tend to have a high absentee rate.
There is always a single market coordination mechanism in economic models.
Answer the following statement true (T) or false (F)