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A Positive Externality Is an External Benefit That Accrues to the Buyers

question 17

True/False

A positive externality is an external benefit that accrues to the buyers in a market while a negative externality is an external cost that accrues to the sellers in a market.


Definitions:

Part

A component or piece that combines with other pieces to form a whole machine, system, or object.

Foreign Demand

The desire and willingness of buyers from other countries to purchase goods and services.

Dollar Depreciates

A decrease in the value of the U.S. dollar relative to other currencies in the foreign exchange market, making foreign goods more expensive and U.S. exports cheaper.

Gold Standard

A monetary system in which the value of a currency is directly linked to a specified amount of gold, allowing currency to be exchanged for gold at the fixed rate.

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