When a Positive Externality Exists,_______________________ and Thus _______________ Intervention May

question 80

Multiple Choice

When a positive externality exists,_______________________ and thus _______________ intervention may be needed to achieve efficiency.

• A) external costs are necessarily greater than private costs; government
• B) social costs equal private costs; no government
• C) social costs are less than private costs; government
• D) social costs are greater than private costs; government
• E) none of the above

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Definitions:

Financial Statement

A comprehensive report detailing a company's financial performance, position, and cash flows over a specific period.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, detailing the repayment time frame, interest rate, and other conditions of the credit agreement.

Merchandise

Goods bought for resale in the course of business, typically in a retail or wholesale establishment.

Payments

The act of transferring money in exchange for goods or services, or to settle debts.