If a market is subject to a positive externality,
A) the demand curve reflecting social benefit will be to the right of the demand curve representing private benefit.
B) there is only one demand curve.
C) the demand curve reflecting social benefit will be to the left of the demand curve representing private benefit.
D) private benefit will exceed social benefit.
B
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Explain how the introduction of an additional competitive market can always solve the efficiency problem that emerges from a positive externality.
What will be an ideal response?
Which of the following favors government policies to stimulate the economy by creating incentives for individuals and businesses to increase their productive efforts?
a. supply-side economics. b. Keynesian economics. c. monetarist economics. d. Marxian economics.
The four central issues in economics include all of the following questions except
a. who produces what b. how are goods produced c. when are goods produced d. who consumes what e. who decides about production and consumption
The Board of Governors of the Federal Reserve has ____ members
A. 5 B. 7 C. 9 D. 14