Which of the Following Statements Is NOT True of External

question 223

Multiple Choice

Which of the following statements is NOT true of external benefits?

• A) External benefits lead to an underallocation of resources to the production of the good that has the external benefit.
• B) External benefits lead to a price in the market that is too high.
• C) External benefits lead to too few of the goods that have the external benefit being produced.
• D) External benefits are a good thing for the allocation of resources because people are getting something at no cost.

---

Definitions:

Specific Epithet

The second part of the name of a species; designates a specific species belonging to that genus.

Linnaean System

A classification system for living organisms introduced by Carl Linnaeus, organizing species based on shared characteristics into a hierarchical framework.

Nomenclature

A system of names or terms, or the rules for forming these terms in a particular field of arts or sciences.

Zea Mays

A plant species known as maize or corn, widely cultivated as a food crop for humans, livestock, and as a biofuel source.