If the Market Equilibrium Quantity Is Greater Than the Socially

question 137

Multiple Choice

If the market equilibrium quantity is greater than the socially optimal quantity, one can infer that:

• A)the private supply curve for the activity is to the left of the socially optimal supply curve.
• B)the private demand curve for the activity is below the socially optimal demand.
• C)there is a positive externality associated with this good.
• D)there is a negative externality associated with this good.

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Definitions:

Derivative Suit

A lawsuit brought by shareholders on behalf of a corporation against third parties or insiders like directors, alleging harm to the company.

Corporate Treasury

The division within a corporation that manages the company's finances, including cash flow, investments, and risk.

Cumulative Voting

A voting system commonly used in corporate elections that allows shareholders to concentrate their votes on a single candidate, as opposed to distributing them among multiple candidates.

Straight Voting

A voting system where shareholders must vote for directors individually, with each shareholder's vote proportional to their shareholding.