If Positive Externalities Are Present in a Free Market,________ at Any

question 35

Multiple Choice

If positive externalities are present in a free market,________ at any output level.

• A) the marginal cost of production equals the average cost of production
• B) the marginal social cost of production exceeds the marginal private cost
• C) the marginal private benefit from production equals the marginal social benefit
• D) the marginal social benefit of production exceeds the marginal private benefit

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Definitions:

World-Index Portfolio

An investment portfolio comprising a wide variety of assets that aim to mirror the performance of global financial markets or specific global indexes.

Single-Country Funds

Investment funds that target securities from a specific country, offering exposure to that nation’s economic performance.

Mutual Funds

Investment vehicles that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

GDP Per Capita

The measure of a country's economic output per person, adjusting for its population size.