Which of the Following Has a Positive Externality and Hence

question 28

Multiple Choice

Which of the following has a positive externality and hence can be underprovided?

• A) Chronically ill people are not allowed to buy insurance.
• B) health insurance purchased through an employer
• C) vaccination
• D) Health Maintenance Organizations
• E) None of the above has a positive externality.

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Definitions:

Total Costs

The complete sum of all expenses incurred by a business in producing goods or services, including fixed and variable costs.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, measured in terms of the number of finished units those in-process items represent.

Motion Pictures

A category of visual art form that uses moving images to tell stories or convey information, often accompanied by sound.

Process Cost System

An accounting system used to track costs in industries where production is continuous and processes are uniform, assigning costs to units of output.