When the Production of a Good Results in a Positive

question 475

Multiple Choice

When the production of a good results in a positive externality, the social value curve is

• A)below the demand curve, indicating that the total value to society is less than the private benefit.
• B)above the demand curve, indicating that the total value to society is greater than the private benefit.
• C)identical to the demand curve, indicating that the total cost to society is the equal to the private benefit.
• D)above the supply curve, indicating that the total cost to society exceeds the private cost.

---

Definitions:

Close-Out Questions

Questions asked at the end of a discussion or survey to confirm understanding, gather feedback, or conclude the interaction.

Leading Questions

Queries designed to guide or prompt a specific answer, often revealing a bias or desired outcome.

Information Is Weakness

This phrase suggests that in certain contexts, possessing or revealing too much information may create vulnerabilities or disadvantages.

Communication Model

A theoretical framework that describes the process through which information is transferred from a sender to a receiver.