When External Benefits Are Significant

question 219

Multiple Choice

When external benefits are significant:

• A) market output is too low.
• B) market output is too high.
• C) market output is at the efficient level.
• D) social surplus is maximized.

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Definitions:

Extreme Scores

Values in a data set that are significantly higher or lower than the majority of the other scores, potentially skewing results.

Less Extreme

Refers to measures or values that are closer to the average or mean in a distribution, as opposed to being more extreme or far from the average.

Mean

A statistical measure representing the average value in a set of numbers, calculated by dividing the sum of all values by the number of values.

Statistical Regression

A statistical process for estimating the relationships among variables, often used to predict the value of a dependent variable based on one or more independent variables.