For a Production Process That Involves a Positive Externality,it Is

question 2

Multiple Choice

For a production process that involves a positive externality,it is true that

• A)a per unit tax could be imposed on the producer to achieve the socially optimal level of production.
• B)marginal social benefit is less than marginal private benefit.
• C)marginal social cost is more than marginal private cost.
• D)without government intervention the market will produce too much of this good.
• E)a subsidy to producers could increase production to the socially optimal level.

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Definitions:

Basal Ganglia

A group of structures in the brain involved in movement control and coordination.

Medulla Oblongata

The lower portion of the brainstem, which regulates vital bodily functions such as breathing, heart rate, and blood pressure.

Prefrontal Lobe

A region at the front of the frontal lobes of the brain, associated with complex behaviors, decision making, and moderating social behavior.

Afferent Fibers

Afferent Fibers are nerve fibers that carry sensory information from the sensory receptors in the periphery of the body towards the central nervous system.