Which of the Following Is True If the Production of a Good

question 94

Multiple Choice

Which of the following is true if the production of a good gives rise to a positive externality?

• A) The marginal social benefit from each level of output exceeds the consumers' willingness to pay.
• B) The marginal private benefit from production exceeds the marginal social benefit.
• C) The demand curve for the good shifts to the left in the presence of positive externalities.
• D) The demand curve for the good shifts to the right in the presence of positive externalities.

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Definitions:

Narcissism

A personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, troubled relationships, and a lack of empathy for others.

Self-serving Bias

A common cognitive bias that causes individuals to attribute their successes to internal factors and their failures to external factors.

Defensive Self-esteem

A form of self-esteem characterized by a fragile sense of self that can easily be threatened and may lead to defensive or aggressive reactions.

Low Self-efficacy

The belief in one's inability to execute behaviors necessary to produce specific performance attainments.