If a Good That Generates Positive Externalities Was Produced and Priced

question 120

Multiple Choice

If a good that generates positive externalities was produced and priced to take into account these spillover benefits, then its

• A)price and output would increase.
• B)output would increase, but price would remain constant.
• C)price would increase and output would decrease.
• D)price would increase, but output would remain constant.

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Definitions:

Sampling

The process of selecting a subset of individuals from a population to estimate characteristics of the whole population.

Stratified Random Sampling

A method of sampling from a population where the population is divided into distinct subgroups and samples are drawn from each subgroup.

Simple Random Sampling

A sampling method where each member of the population has an equal chance of being selected, ensuring the sample's representativeness.

Mutually Exclusive

Events that cannot occur at the same time, indicating a scenario where the happening of one event precludes the occurrence of the other.