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When a Positive Externality Is Present in a Market, Total

question 130

Multiple Choice

When a positive externality is present in a market, total surplus will _______ if buyers _______.


Definitions:

Domestic Supply

The aggregate production of goods and services within a country, intended for use inside the country or for export.

Domestic Demand

The total demand for goods and services within the domestic economy, excluding exports but including imports.

Tariff

A levy placed by a government on products and services brought in from abroad.

Government Revenue

The money received by the government from various sources, including taxes, fees, fines, and the sale of goods and services.

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