Which of the Following Is True of Markets Characterized by Positive

question 130

Multiple Choice

Which of the following is true of markets characterized by positive externalities?

• A)Social value exceeds private value, and market quantity exceeds the socially optimal quantity.
• B)Social value is less than private value, and market quantity exceeds the socially optimal quantity.
• C)Social value exceeds private value, and market quantity is less than the socially optimal quantity.
• D)Social value seldom exceeds private value; therefore, social quantity is less than private quantity.

Understand the concept of economic profit versus salaries and its significance in business.

Discern the difference between insurable and uninsurable risks in entrepreneurship.

Recognize the functions and effects of economic policies on the supply of loanable funds and investment rates.

Understand the relationship between nominal and real interest rates, inflation, and investment decisions.

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Definitions:

Memorial Service

A ceremony held in honor of a deceased person, typically without the body present.

Ex-Wife

A woman who was previously married to a person but is now divorced from them.

Specific Factor

An element or aspect that has a particular influence on an outcome or situation, distinguishing it from other variables.

Spearman's

Refers to Spearman's rank correlation coefficient, a statistical measure used to assess the strength and direction of association between two ranked variables.