If a Positive Externality Is to Be Taken Full Advantage

question 160

Multiple Choice

If a positive externality is to be taken full advantage of, the:

• A) consumer of the good should receive a subsidy equal to the marginal cost imposed on third parties that results from production (or consumption) of the good.
• B) producers' marginal costs should be increased by an amount equal to the marginal benefit to third parties that results from production of the good.
• C) consumer of the good should pay a tax equal to the marginal benefit to third parties that results from production (or consumption) of the good.
• D) producers' marginal costs should be decreased by an amount equal to the marginal cost imposed on third parties that results from production of the good.

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Definitions:

Straight Catheter

A tube designed for single-use insertion into the bladder to drain urine, often used in medical settings for patients unable to urinate naturally.

Postmenopausal

The period in a woman's life following the cessation of menstrual cycles, marking the end of reproductive capability.

Urinary Tract Infections (UTIs)

Infections that affect any part of the urinary system, including the bladder, kidneys, ureters, and urethra.

Hydroureter

The dilation of the ureter due to the accumulation of fluid, often resulting from an obstruction or blockage that prevents urine from flowing freely.