The Existence of Marginal External Benefits for a Product Like

question 234

Multiple Choice

The existence of marginal external benefits for a product like higher education creates a deadweight loss for society because,without government intervention,________ would be consumed and ________ would be produced.

• A) more than the efficient amount; more than the efficient amount
• B) more than the efficient amount; less than the efficient amount
• C) less than the efficient amount; more than the efficient amount
• D) less than the efficient amount; less than the efficient amount
• E) the efficient amount; the efficient amount

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Definitions:

Liable

Subject to legal obligation, where an individual or entity is responsible for fulfilling certain duties or compensating for harm caused to others.

Conditions Precedent

Specific conditions that must be fulfilled before a contract or agreement becomes legally binding.

Negotiable Instrument

An official written promise to pay a specified amount of money, which can be demanded at any time or payable at an agreed upon time, identifying the payer on the document.

Secondary Liability

A legal responsibility whereby one party is held liable for the actions of a third party, typically in copyright or partnership cases.