Which of the Following Statements Is True

question 185

Multiple Choice

Which of the following statements is true?

• A)When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will certainly be for the worse.
• B)When production of a good yields negative externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount greater than costs will increase.
• C)When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount less than costs will increase.
• D)a, b, and c
• E)none of the above

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Definitions:

Acronym

A word formed from the initial letters of other words, used as a shorthand or abbreviation (e.g., NASA for National Aeronautics and Space Administration).

OCEAN

An acronym for the Big Five personality traits model: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

Pessimist

A person who tends to see the worst aspect of things or believe that the worst will happen.

Optimist

An individual who generally believes in positive outcomes and possesses a positive outlook on life.