When a Positive Externality Is Present in a Market, the Imposition

question 73

Multiple Choice

When a positive externality is present in a market, the imposition of a government subsidy will:

• A)increase surplus.
• B)increase efficiency.
• C)make consumers internalize the external benefit.
• D)All of these are true.

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Definitions:

Mate Selection

The process individuals use to choose partners with whom to form a reproductive relationship, influenced by various biological, social, and cultural factors.

Gender Differences

Variations in characteristics, behaviors, roles, and expectations based on one's identified or perceived gender.

Traditional Values

Socially inherited norms and beliefs that are passed down through generations, typically emphasizing family roles, religion, and moral views.

Equity Theory

A theory of motivation that suggests fairness in the balance between an individual's inputs and outputs in a relationship contributes to their satisfaction.