The Existence of Marginal External Benefits for a Product Like

question 234

Multiple Choice

The existence of marginal external benefits for a product like higher education creates a deadweight loss for society because,without government intervention,________ would be consumed and ________ would be produced.

• A) more than the efficient amount; more than the efficient amount
• B) more than the efficient amount; less than the efficient amount
• C) less than the efficient amount; more than the efficient amount
• D) less than the efficient amount; less than the efficient amount
• E) the efficient amount; the efficient amount

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Definitions:

Exporting

The process of selling and shipping goods or services from one country to another.

Wealth Gap

The uneven distribution of assets among residents of a particular country or the world, leading to significant disparities in wealth and economic status.

Misallocating

The improper or inefficient distribution or use of resources, often leading to suboptimal outcomes.

Multinational Corporations

Large companies that operate, produce, or sell goods and services in multiple countries beyond their home country.