In the Case of Either a Positive or a Negative

question 129

Multiple Choice

In the case of either a positive or a negative externality,it will always be true that,relative to the social optimum,the

• A) price will be too low.
• B) price will be too high.
• C) quantity will be too large.
• D) demand will be too small.
• E) supply will be too great.

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Definitions:

Portfolio

An assortment of financial assets such as shares, debts, natural resources, liquid cash, and near-cash items, encompassing mutual funds and Exchange-Traded Funds.

Joint Probability Distribution

A statistical measure that gives the probability of two or more events occurring simultaneously.

Mobile Phone Store

A retail outlet specializing in the sale of mobile phones and related accessories.

Diversification

A strategy of investing in a variety of assets to reduce overall risk.