When the production of a good results in a positive externality, the social value curve is
a. below the demand curve, indicating that the total value to society is less than the private benefit.
b. above the demand curve, indicating that the total value to society is greater than the private benefit.
c. identical to the demand curve, indicating that the total cost to society is the equal to the private benefit.
d. above the supply curve, indicating that the total cost to society exceeds the private cost.
b
You might also like to view...
Increases in resources and efficiency would increase potential GDP
Indicate whether the statement is true or false
When the SEC requires companies to publicly release financial statements, which of the following remedies of conflicts of interest does this fall under?
A) leave it to the market B) regulate for transparency C) supervisory oversight D) separation of functions
An important effect of foreign currency speculators is that
a. they have consistently lost money and have left the market. b. they have pushed exchange rates to wider extremes than most economists predicted. c. they actually limit the volatility of exchange rate movements. d. they have had no effect at all on exchange rate volatility.
Critics of economic growth:
A. contend that growth and industrialization reduce pollution. B. argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth. C. point out that growth results in greater economic security for workers. D. say that its benefits accrue nearly exclusively to white males.