When a Positive Externality Exists in the Production of a Good

question 168

Multiple Choice

When a positive externality exists in the production of a good,

• A)subsidizing the production of the good could correct for the externality.
• B)government could correct for the externality by shifting the good's supply curve to the left.
• C)an appropriate policy would result in a decrease in the price of the good.
• D)an appropriate policy would result in a decrease in the good's output.
• E)taxing the production of the good could correct for the externality.

Understand the factors influencing community health and the role of community health nursing.

Identify the goals of Healthy People 2020 and the factors influencing individual and community health.

Understand the differences between policies in the private and public sectors.

Comprehend the historical development and impact of significant health policies and acts.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used to assess liquidity and manage cash effectively.

Rolling Budget

A continuously updated budget that extends into the future for a consistent period, as current months pass, new months are added to the budget.

Incremental Time Period

A specific duration over which the additional effects of decisions or changes are measured.

Cash Budget

A forecast that estimates the cash inflows and outflows over a specific period, helping to manage liquidity and financial planning.