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.

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Definitions:

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Medical tests and procedures conducted during pregnancy to assess the health status and development of the fetus, and to detect any potential genetic or chromosomal abnormalities.

Justify Abortion

The act of providing reasons or arguments in support of terminating a pregnancy based on ethical, medical, or personal criteria.

GINA

The Genetic Information Nondiscrimination Act, a U.S. law that protects individuals from genetic discrimination in health insurance and employment.

Genetic Tests

Laboratory methods used to identify changes in chromosomes, genes, or proteins, typically to discover genetic disorders or predispositions.