Which of the Following Describes How a Positive Externality Affects

question 132

Multiple Choice

Which of the following describes how a positive externality affects a competitive market?

• A)The externality causes a difference between the private benefit from consumption and the social benefit.
• B)The externality causes a difference between the private benefit from production and the social cost of production.
• C)The externality causes quantity demanded to exceed quantity supplied.
• D)The externality causes a difference between the social cost of production and the social cost of consumption.

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Definitions:

Wrinkling

The formation of creases, folds, or ridges on the skin, typically as a result of aging, skin damage, or dehydration.

Automatic

Operations or processes that require minimal conscious thought and effort, often due to learning or repetition.

Health Consequences

The outcome or impacts on a person's physical well-being resulting from certain behaviors, lifestyle choices, or environmental exposures.

Automatic Processing

Cognitive operations that occur without conscious awareness or effort, often developed through extensive practice or familiarity.