Which of the Following Is True of a Positive Externality

question 29

Multiple Choice

Which of the following is true of a positive externality?

• A) Some costs are borne by a third party.
• B) The government can use taxes to move the market to the social optimum.
• C) There are no internal benefits.
• D) Some benefits accrue to a third party.
• E) Its existence always requires corrective measures by the government.

---

Definitions:

Smith v. Allwright

A landmark 1944 United States Supreme Court decision that prohibited racial discrimination in primary elections.

Henry Luce

An influential American magazine magnate who co-founded and headed Time Inc., which published several major magazines including Time, Life, Fortune, and Sports Illustrated.

Black Internationalism

A political and social movement that advocates for the solidarity and connectivity of black people globally against racism, colonialism, and imperialism.

Saturday Evening Post

A longstanding American magazine that began publication in 1821, known for its journalism, fiction, and illustrations.