A Positive Externality Is A(n)

question 17

Multiple Choice

A positive externality is a(n) :

• A)external benefit.
• B)external cost that affects the buyer.
• C)external cost that affects the seller.
• D)benefit that affects the buyer, but not the seller.

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Definitions:

Disposable Income

Funds that households can use for saving and expenditures after income taxes are taken out.

APS

Acronym for Average Propensity to Save, which is the ratio of total savings to total income in an economy, indicating how much people save on average per unit of income.

Investment

Assigning financial resources in the hope of creating revenue or gains.

GDP

Stands for Gross Domestic Product, which is the total value of all goods and services produced within a country's borders in a specific time period.