What Will a Positive Externality Cause a Private Market to Produce

question 196

Multiple Choice

What will a positive externality cause a private market to produce

• A)less than is socially desirable
• B)more than is socially desirable
• C)more than market equilibrium
• D)less than market equilibrium

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Definitions:

Blanket Liens

A legal claim allowing a lender to seize nearly all of a borrower's assets if they default on a loan.

Chattel Mortgage

A loan arrangement in which an item of movable personal property acts as security for the loan, often used in the financing of vehicles and equipment.

Speculative Demand

The demand for a good or asset based on expectations of future price changes, rather than its intrinsic value or productive use.

Unexpected Opportunities

Unforeseen chances or prospects that arise, potentially beneficial for decision-making or strategic planning.