When the Consumption of a Good Creates an External Benefit

question 338

Multiple Choice

When the consumption of a good creates an external benefit,

• A) the marginal social cost curve lies below the marginal private cost curve.
• B) the marginal social benefit curve lies above the marginal private benefit curve.
• C) the quantity produced in an unregulated, competitive market is greater than the efficient quantity.
• D) None of the above answers is correct.

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Definitions:

Capacitance

The ability of a component or circuit to collect and store energy in the form of an electrical charge, measured in Farads.

Bridge Circuit

A circuit that consists of four sections connected in series to form a closed loop.

D'Arsonval Shunt

A D'Arsonval shunt is a precision resistor used in conjunction with a D'Arsonval meter movement to allow the measurement of high currents by diverting some of the current away from the sensitive galvanometer coil.

Contact Resistance

The resistance to the flow of electricity encountered at the point where two conductive surfaces meet or connect.