When a Market Experiences a Positive Externality

question 255

Multiple Choice

When a market experiences a positive externality,

• A)the demand curve does not reflect the value to society of the good.
• B)too much of the good is being produced.
• C)the government can internalize the externality by imposing a tax on the product.
• D)the private value is greater than the social value.

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Definitions:

Sexually Mature

The stage in an organism's life where it has reached reproductive capability or sexual adulthood.

Transsexuals

Individuals who have undergone medical transitioning to align their physical sex with their gender identity.

Ambiguous Genitalia

A condition where a newborn's external sexual organs do not appear clearly male or female, making it difficult to assign the infant's sex at birth.

Transsexuals

Individuals whose gender identity differs from the sex they were assigned at birth, often undergoing medical treatments to align their physical appearance with their gender identity.