Which of the Following Has a Positive Externality and Hence

question 52

Multiple Choice

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

• 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 have a positive externality.

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Definitions:

Standard Costs

Predetermined costs for material, labor, and overhead used as benchmarks against which to compare the actual production costs.

Direct Material

Raw materials that are directly traced and assigned to the production of a specific product.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit of material.

Kilos

A metric unit of mass equal to one thousand grams, commonly used for measuring weight in many countries.