Suppose That the Production of a Good Causes Positive Externalities

question 126

Multiple Choice

Suppose that the production of a good causes positive externalities. What will happen if the good is produced at the level at which the marginal private benefit curve meets the supply curve?

• A)The level of production will be socially desirable.
• B)The level of production will result in a net social cost.
• C)The level of production will result in a net social benefit.
• D)The producers will incur losses.
• E)There will be no buyers in the market.

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Definitions:

Prejudice

A preconceived opinion or judgment towards people, groups, or subjects, usually negative, formed without sufficient knowledge, thought, or reason.

Oppression

The systematic and unjust treatment or control of individuals or groups, often resulting in restricted freedom and inequality.

Economic Values

The importance assigned to goods and services based on their benefit to an individual or society, often influencing choices and behaviors.

Social Workers

Professionals dedicated to assisting individuals, families, and communities in improving their well-being and solving personal and social problems.