A Positive Externality Results When

question 252

Multiple Choice

A positive externality results when

• A)economists are sure that a good or service provides benefits to consumers.
• B)someone pays for a good or service even though she is not directly affected by the production or consumption of it.
• C)people who live in one country benefit from the production of a good or service that occurs in another country.
• D)people who are not directly involved in producing or paying for a good or service benefit from it.

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Definitions:

Manufacturing Overhead

Indirect factory-related costs incurred when a product is manufactured, including costs like maintenance, electricity, and equipment depreciation.

Indirect Cost

A cost that cannot be easily and conveniently traced to a specified cost object.

Factory Supervisor

An individual responsible for overseeing the production processes and workers within a manufacturing facility.

Direct Cost

A cost that can be easily and conveniently traced to a specified cost object.