In the Case of a Positive Externality, the Entire Demand

question 172

Multiple Choice

In the case of a positive externality, the entire demand curve lies

• A)above the entire marginal social benefit curve.
• B)below the entire marginal social benefit curve.
• C)above the entire supply curve.
• D)below the entire supply curve.
• E)b and c

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Definitions:

Project

A deliberate arrangement of tasks that are interconnected, aimed to be finalized within a designated time frame and under particular cost and constraint conditions.

Accounting Rate

Typically referred to as the rate of return, it measures the profitability of investments or projects based on accounting information, rather than the current market value.

Limited Economic Resource

A scarcity or limitation of resources that possess utility or value, which restricts their availability for use in production, consumption, or investment.

Mutually Exclusive

Situations or events that cannot occur at the same time, often used in decision-making scenarios where the choice of one option precludes the selection of another.