Who Loses Surplus When Consumers in a Market Are Forced

question 23

Multiple Choice

Who loses surplus when consumers in a market are forced to internalize a positive externality?

• A)Consumers
• B)Producers
• C)Others affected by the externality
• D)Both producers and consumers lose surplus when positive externalities are internalized.

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Definitions:

Foreign Country

A nation-state or territory that is recognized as independent and distinct from one's own country, governed by its own political and legal systems.

Mechanical Engineer

A professional engineer who designs, analyzes, and maintains mechanical systems.

Fossil Fuel

A natural fuel such as coal, oil, or natural gas, formed in the geological past from the remains of living organisms.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is essential for most known forms of life and used in many industrial processes.