When the Consumption of a Good Creates an External Benefit

question 33

Multiple Choice

When the consumption of a good creates an external benefit,

• A) the quantity produced in an unregulated, competitive market is greater than the efficient quantity.
• B) the marginal social benefit curve lies above the marginal private benefit curve.
• C) the marginal social cost curve lies below the marginal private cost curve.
• D) None of the above answers is correct.

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Definitions:

Persuasion

The act or process of influencing someone's beliefs, attitudes, or behaviors through argument, reasoning, or appeal.

Foot-In-The-Door Technique

A persuasive strategy where agreeing to a small initial request increases the likelihood of compliance with a larger request later.

Elementary School

An educational institution for young children that provides the first years of compulsory education.

Tutor

A person who provides individual guidance or instruction, often in a specific subject area, to enhance learning.