When the Consumption of a Good Generates an External Benefit

question 114

Multiple Choice

When the consumption of a good generates an external benefit,

• A) the private benefit consumers receive from the good will be higher than the true social benefit.
• B) too much of the good will tend to be produced from the viewpoint of economic efficiency.
• C) the community generally suffers an exactly offsetting external cost from the production of the good.
• D) the market demand curve will understate the total benefits derived from consumption of the good, and as a result, too little of it will be produced and consumed.

Analyze the benefits and timing for third-party intervention in disputes.

Identify the factors that affect mediation effectiveness.

Recognize mediator behaviors related to successful mediation outcomes.

Describe different ADR systems and their applications.

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Definitions:

Increased Life Expectancy

A rise in the average number of years that individuals within a population are expected to live.

Degenerative Conditions

Degenerative conditions are illnesses or diseases characterized by the progressive deterioration of function or structure of affected tissues or organs.

Heart Disease

A range of conditions affecting the heart's structure and function, including coronary artery disease, heart attacks, and heart failure.

American Medical Association

A professional group in the United States that sets standards for medical education, practice, and ethics, and advocates for physicians and patients.