When a Positive Externality Exists

question 125

Multiple Choice

When a positive externality exists,

• A)external benefits are necessarily greater than private benefits.
• B)social benefits are greater than private benefits.
• C)social benefits are less than private benefits.
• D)social benefits equal private benefits.
• E)none of the above

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Definitions:

Stable Attribution

The assumption that the factors that resulted in a particular outcome will not change.

Successes

are achieved outcomes or accomplishments that meet desired goals or criteria.

Future Outcomes

Considerations or expectations about events or results that will happen in the future, often influencing decision-making and behavior.

Rules

Guiding principles designed to influence behavior or decision-making processes within a particular context.