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:

Dark Skin

Skin type with higher melanin content, providing greater protection against ultraviolet radiation but varying significantly within and across different populations.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine, where most of the digestion and absorption of nutrients occurs.

Lactase

An enzyme in the small intestine that enables humans to assimilate lactose (milk sugar).

Melanin

A pigment found in most organisms, responsible for coloration of the skin, hair, and eyes, and protection against UV radiation.