If Consuming a Good Creates a Positive Externality

question 189

Multiple Choice

If consuming a good creates a positive externality,

• A)marginal private benefits exceed marginal social benefits
• B)marginal social benefits exceed marginal private benefits
• C)private demand is equal to marginal social benefit
• D)private demand is greater than marginal social benefit
• E)the private demand curve shifts to the right to coincide with the marginal social benefit curve

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Definitions:

Pollution Emissions

The release of pollutants, harmful chemicals, or substances into the environment, typically as a byproduct of industrial activity or transportation.

Total Pollution Emissions

Total Pollution Emissions refer to the sum of all harmful pollutants released into the environment by human activities, including industrial processes, vehicles, and agriculture.

Marginal Benefits

The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.

Pollution Tax

A levy imposed on activities that emit pollutants, intended to internalize the environmental costs of those emissions and encourage pollution reduction.