When a Positive Externality Is Internalized,efficiency Increases by Shifting The

question 105

Multiple Choice

When a positive externality is internalized,efficiency increases by shifting the:

• A)external benefit from those not involved in the market to those involved.
• B)private cost from those involved in the market to those not involved.
• C)private cost from those not involved in the market to those involved.
• D)social cost from those not involved in the market to those involved.

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Definitions:

Dichotomy Corollary

A principle suggesting a division or contrast between two things that are presented as being entirely different or opposite.

Bipolar

A psychiatric diagnosis characterized by significant mood swings, including manic highs and depressive lows.

Mutually Exclusive Alternatives

Options in a decision-making scenario that cannot be chosen or occur together.

Unconscious

A part of the mind that contains thoughts, memories, and desires not within the realm of conscious awareness, deeply influencing behavior and thoughts according to psychoanalytic theory.