A Positive Externality

question 477

Multiple Choice

A positive externality

• A)causes the product to be overproduced.
• B)provides an additional benefit to market participants.
• C)benefits consumers because it results in a lower equilibrium price.
• D)is a benefit to a market bystander.

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Definitions:

Medication Allergy

An immune system reaction that occurs as a response to a specific medication, ranging from mild to severe.

Carbon Monoxide Poisoning

A potentially fatal condition caused by inhalation of carbon monoxide gas, which prevents oxygen from being utilized properly by the body.

Carotenemia

A condition characterized by yellowing of the skin caused by increased levels of carotene, often resulting from excessive intake of carotene-rich foods.

Polycythemia

A medical condition characterized by an increased number of red blood cells in the bloodstream.