If the Consumption of a Good Yields External Benefits,then

question 65

Multiple Choice

If the consumption of a good yields external benefits,then

• A)The social demand is greater than the market demand.
• B)The social demand is equal to the market demand.
• C)The social demand is less than the market demand.
• D)There is neither social demand nor market demand for the good.

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Definitions:

Disequilibrium

Disequilibrium refers to a situation in which there is an imbalance or mismatch, often used in economics to describe markets where supply does not equal demand, but also applicable in other contexts such as biology and psychology.

Rational Choice Theory

A framework that assumes individuals act based on rational calculations to maximize their benefits and minimize their losses in any given situation.

James Coleman

An influential American sociologist known for his work on educational sociology and social theory.

Contemporary Exchange

Modern-day transactions or interactions, which can be economic, social, or cultural, reflecting current practices and values.