When Positive Externalities Are Present in a Market

question 115

Multiple Choice

When positive externalities are present in a market:

• A)individuals don't take into account all the benefits associated with their market choices.
• B)society bears part of the cost of private transactions.
• C)individuals consume more than the socially optimal quantity.
• D)All of these are true.

---

Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue that extends from the brainstem down the back, enclosed in the vertebral column.

Lumbar Plexus

A network of nerve fibers in the lower back (lumbar region) that supplies nerves to the lower limb.

Major Nerve

A principal nerve, typically large in size, that carries significant sensory or motor information to and from the central nervous system.

Brachial Plexus

A network of nerves that originate from the spinal cord in the neck and supply the arm and hand.