Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true?

• A)In the case of positive externalities,a private market will produce too little of the good compared with the socially efficient level of output.
• B)In the case of positive externalities,a private market will produce too much of the good compared with the socially efficient level of output.
• C)Negative externalities occur when benefits accrue to individuals not directly involved in the transaction.
• D)Positive externalities occur when costs are imposed on individuals not directly involved in the transaction.
• E)In the case of negative externalities,a private market will produce too little of the good compared with the socially efficient level of output.

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Definitions:

Infants

Young babies, typically under one year old, in the early stages of development.

Ounces

Ounces are a unit of weight commonly used in the United States' customary and British imperial systems, equal to one-sixteenth of a pound.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Distribution

In statistics, the way in which values of a variable or a set of variables are spread or dispersed across different levels.