When the Production of a Good Results in a Positive

question 168

Multiple Choice

When the production of a good results in a positive externality,the social value curve is:

• A) below the demand curve,indicating the total value to society is less than the private benefit.
• B) above the demand curve,indicating the total value to society is greater than the private benefit.
• C) identical to the demand curve,indicating the total cost to society is the equal to the private benefit.
• D) above the supply curve,indicating the total cost to society exceeds the private cost.

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Definitions:

Internal Combustion Engine

An engine in which the combustion of a fuel occurs with an oxidizer in a combustion chamber.

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid, playing a crucial role in the Industrial Revolution by powering machinery, locomotives, and ships.

Toxic Dumps

Sites where hazardous waste is disposed of without proper precautions, often causing environmental contamination and health issues for nearby communities.

Oil Refineries

Oil refineries are industrial processing plants where crude oil is transformed and refined into more useful products like gasoline, diesel, and other petrochemicals.