A Good That Provides External Benefits to Society Has

question 121

Multiple Choice

A good that provides external benefits to society has:

• A) too few resources devoted to its production.
• B) too many resources devoted to its production.
• C) the optimal resources devoted to its production.
• D) not provided profits to producers of the good.

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Definitions:

Cocktail Provision

A clause in agreements or policies designed to handle unforeseen circumstances.

Preferred Shares

Type of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often with fixed dividends.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Acquisition

The process of acquiring control of a company by purchasing its shares or assets, effectively resulting in a change of ownership.