The Net Increase to Total Surplus When a Positive Externality

question 74

Multiple Choice

The net increase to total surplus when a positive externality is internalized is due to:

• A)the transfer of surplus from those affected by the externality to the consumer.
• B)the increased number of units bought and sold in the market.
• C)the transfer of surplus from the consumer to those affected by the externality.
• D)None of these statements is true.

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Definitions:

Concrete Thinking

A mode of thinking that is focused on physical objects, literal understanding, and specific details, rather than abstract concepts or metaphors.

Egocentric Tendencies

Behavioral patterns where an individual prioritizes their own perspective and needs over those of others, often lacking empathy.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving rituals and devotional observances.

Middle Childhood

A developmental stage that ranges from about 6 to 12 years of age, characterized by significant growth in cognitive, emotional, and social development.