Suppose the Actions of the Producers of a Good Generate

question 32

Multiple Choice

Suppose the actions of the producers of a good generate an external benefit which results in the actual market price of $15 and market output of 614 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient price would higher than $15 while the efficient output would be less than 614 units.
• B) The efficient price would be higher than $15 while the efficient output would be greater than 614 units.
• C) The efficient price would be lower than $15 while the efficient output would be less than 614 units.
• D) The efficient price would be lower than $15 while the efficient output would be greater than 614 units.

---

Definitions:

Demand for Labor

The total amount of workers that employers want to hire at a given wage rate, in a given time period.

Union Membership

Involvement in an organized association of workers formed to protect and further their rights and interests in the workplace.

Labor Force

The total number of people, both employed and unemployed, who are actively looking for work in the economy.

Inclusive Union

A labor union that aims to represent all workers within a particular industry or workplace, regardless of job or skill level, focusing on broad inclusivity.