When External Benefits Are Present in a Market

question 15

Multiple Choice

When external benefits are present in a market,

• A) less of the good will be produced than the amount consistent with economic efficiency.
• B) more of the good will be produced than the amount consistent with economic efficiency.
• C) the amount of the good produced will be equal to the amount consistent with economic efficiency.
• D) corresponding external costs are always generated.

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Definitions:

Marshall Plan

A U.S. initiative to aid Western Europe, in which over $12 billion was given to help rebuild Western European economies after the end of World War II.

Successful

Achieving desired visions and planned goals, often marked by financial profitability, personal fulfillment, or the attainment of popularity.

NAACP

Stands for National Association for the Advancement of Colored People, an organization founded in 1909 to fight for civil rights and eliminate race-based discrimination.

Cold War Language

A set of jargon, phrases, and terminology that was developed during the Cold War to describe the ideologies, strategies, and weapons related to the conflict.