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:

Whig Party

A political party in the United States active in the mid-19th century, advocating for modernization, banking, and economic protectionism, and opposing policies perceived as favoring a "slave power."

Deep South

A region in the southeastern United States known for its unique cultural, historical, and economic attributes, often associated with the Confederacy in the American Civil War.

Protestants

Members of any of the Western Christian churches that are separate from the Roman Catholic Church and follow the principles of the Reformation.

Government Control

The extent and methods through which a governmental body regulates or influences societal behavior, economic activities, and public policies.