The Presence of a Positive Externality in a Market Leads

question 176

Multiple Choice

The presence of a positive externality in a market leads to a(n) ________.

• A) underproduction of a good
• B) overproduction of a good
• C) gain in producer surplus
• D) fall in consumer surplus

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Definitions:

Chi-Square

A statistical test that measures the difference between observed and expected frequencies in categorical data.

Row Variable

In the context of a data table or matrix, it refers to the variable represented by the rows, often used in cross-tabulation to compare against another variable.

Column Variable

A variable represented by a column in a dataset, where each entry in the column represents a value of the variable.

Degrees of Freedom

In statistics, it refers to the number of independent values or quantities which can be assigned to a statistical distribution, less the number of parameters estimated.