When a Positive Externality Exists

question 175

Multiple Choice

When a positive externality exists,

• A)external benefits are necessarily greater than private benefits.
• B)social benefits are greater than private benefits.
• C)social benefits are less than private benefits.
• D)social benefits equal private benefits.

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Definitions:

Iron Cage

Max Weber's metaphor for the increased rationalization inherent in social life, particularly in Western capitalist societies, leading to individuals feeling trapped by bureaucracies and rigid rules.

Rational Systems

Organizational structures that operate based on clear rules, regulations, and procedures aimed at achieving efficiency and predictability.

Sociological Theory

A set of ideas that provides an explanation for human society, analyzing the structure and dynamics of society and human behavior within it.

Continued Relevance

The ongoing importance or applicability of an idea, theory, or knowledge in the face of changing contexts or over time.