If the Marginal Social Benefit of Consuming a Good or a Service

question 67

Multiple Choice

If the marginal social benefit of consuming a good or a service exceeds the marginal private benefit

• A)a negative externality exists.
• B)the market achieves economic efficiency.
• C)a positive externality exists.
• D)the sum of consumer surplus and producer surplus is maximized.

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Definitions:

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Temporal Method

A method used in accounting to translate foreign currency transactions into the reporting currency of a business.

Current Exchange Rates

The present value of one currency in terms of another, used in converting from one currency to another.

Remeasured

Refers to the adjustment of the value of an asset or currency to reflect current market values or exchange rates.