If the Social Value of Producing a Good Is Always

question 433

Multiple Choice

If the social value of producing a good is always higher than the private value of producing it, then there is a

• A)negative externality associated with the production of the good, and the market equilibrium quantity of the good is less than the socially optimal quantity.
• B)negative externality associated with the production of the good, and the socially optimal quantity of the good is less than the market equilibrium quantity.
• C)positive externality associated with the production of the good, and the market equilibrium quantity of the good is less than the socially optimal quantity.
• D)positive externality associated with the production of the good, and the socially optimal quantity of the good is less than the market equilibrium quantity.

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Definitions:

Colonialism

A policy or practice by which a powerful country directly controls less powerful countries and exploits them economically, defining much of global history and resulting in lasting socio-political and economic impacts.

Racial Groups

Categories of humans based on shared physical or social qualities into groups generally viewed as distinct by society. The criteria for such grouping can be controversial and vary widely.

Inner Cities

Urban areas that are close to the central business districts and often characterized by high population density, economic hardship, and sometimes decay.

Basketball Participation

Involves engaging in the sport of basketball, either casually, competitively, or professionally.