If Consumption of a Good Creates Positive Externalities,then

question 96

Multiple Choice

If consumption of a good creates positive externalities,then

• A)the market will under produce it
• B)the market will over produce it
• C)the market must be perfectly competitive
• D)the market must be constrained by barriers to entry
• E)the market will produce the most efficient quantity

---

Definitions:

Independence

In probability and statistics, a condition where two events or variables have no influence on each other's occurrence or value.

Homogeneity

The quality or state of being uniform in composition or character; in statistics, it refers to the similarity of elements or observations within groups.

Tests of Homogeneity

Statistical tests used to determine if different populations have the same variance or other characteristics.

Binomial Populations

Populations that follow a binomial distribution, characterized by fixed number of trials, two possible outcomes, constant probability of success, and independence of trials.