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.

Recognize the application and customization of text effects and WordArt.

Utilize SmartArt and shapes effectively within documents.

Manage document sections and breaks to organize content.

Modify text and object positions accurately within the document.

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Definitions:

Low Power Distance

A cultural value that suggests a preference for equality among individuals, minimizing hierarchical differences.

United States

A country in North America, consisting of 50 states, a federal district, and five territories, known for its strong economy and diverse population.

Sweden

A Scandinavian country known for its significant contributions to global innovation, social welfare, and environmental policy.

Localization

The process of adapting certain functions to accommodate the language, culture, or governing laws of a country.