When a Market Experiences a Positive Externality,what Can Be Said

question 52

Multiple Choice

When a market experiences a positive externality,what can be said

• A)The demand curve does not reflect the value to society of the good.
• B)Too much of the good is being produced.
• C)The government can internalize the externality by imposing a tax on the product.
• D)The private value is greater than the social value.

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Definitions:

High-Content

Information or media that are rich in substance and significance, often providing comprehensive and deep insights on a subject.

Chain of Command

The hierarchy of authority in an organization that determines how instructions are passed down and accountability is enforced.

Formal Channels

Established pathways for communication within an organization, typically outlined in its hierarchy or organizational structure.

Grapevines

Informal communication channels within organizations where information, rumors, and gossip are spread unofficially among employees.