The Existence of Positive Externalities Due to the Impossibility of Full

question 20

Multiple Choice

The existence of positive externalities due to the impossibility of full appropriability

• A)rejects the usefulness of government protectionism.
• B)supports arguments for free trade.
• C)provides support for government protectionism.
• D)supports the conclusions of the Heckscher- Ohlin model.
• E)supports the concept that the government should support only high- tech industries.

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Definitions:

Marginal Utility

It describes the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Total Utility

The overall satisfaction or benefit received by consuming a product or service.

Marginal Utility

The additional satisfaction a consumer gains from consuming one more unit of a good or service.

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from acquiring or consuming one more unit of a good or service.