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:

Correlation

A statistical measurement that indicates the extent to which two or more variables fluctuate together.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Correlation

A statistical measure that indicates the extent to which two variables fluctuate together.

Variables

Elements, features, or factors that are likely to vary or change within the context of a scientific study or experiment.