When a Positive Externality Exists, _______________________ and Thus _______________ Intervention

question 45

Multiple Choice

When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.

• A)external costs are necessarily greater than private costs; government
• B)social costs equal private costs; no government
• C)social costs are less than private costs; government
• D)social costs are greater than private costs; government

---

Definitions:

Hemoglobin

A protein in red blood cells responsible for transporting oxygen from the lungs to the rest of the body.

Oxygen

A chemical element with symbol O, essential for most life forms on earth, involved in respiration and energy production in cells.

Drain

To remove fluid, often from a body cavity, wound, or other source of accumulation, typically using a tube or other mechanism.