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:

Individual Variations

Differences among individuals in a group, in any characteristic, which may affect their behavior or responses.

Hypnosis

A mental state of heightened focus and suggestibility where the individual can experience altered consciousness.

Application

The act of putting something into operation or the process of applying something for a particular use or purpose.

Sleep Deprivation

A condition resulting from insufficient sleep, affecting physical and mental performance and health.