A Positive Externality or Spillover Benefit Occurs When

question 143

Multiple Choice

A positive externality or spillover benefit occurs when

• A)product differentiation increases the variety of products available to consumers.
• B)the benefits associated with a product exceed those accruing to people who consume it.
• C)a firm does not bear all of the costs of producing a good or service.
• D)firms earn positive economic profits.

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Definitions:

English Civil War

A series of armed conflicts and political machinations between Parliamentarians ("Roundheads") and Royalists ("Cavaliers") in England in the mid-17th century, leading to the trial and execution of Charles I, the dictatorship of Oliver Cromwell, and eventually the restoration of the monarchy.

Magna Carta

A charter of liberties agreed to by King John of England in 1215, considered a foundational document establishing principles of legal authority and individual rights.

Liberties

The state in which one lives without facing harsh restrictions from those in authority on their personal behaviors, lifestyle, or political leanings.

Lords and Barons

Titles in nobility, historically associated with individuals who possess particular ranks in the feudal system, owning land and owing allegiance to a higher lord or the monarch.