Internalizing a Positive Externality Will Cause the Demand Curve to

question 85

Multiple Choice

Internalizing a positive externality will cause the demand curve to

• A)shift to the right.
• B)shift to the left.
• C)become more elastic.
• D)remain unchanged.

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Treasury Bill

A short-term government debt instrument issued at a discount from the face value and pays no interest before maturity.

Simple Interest

The calculation of interest that is based only on the original principal amount and does not include interest on interest.

Market Values

Refers to the current price at which an asset, security, or commodity can be bought or sold in the marketplace.