In a Market Where a Positive Externality Is Present,the Effect

question 83

Multiple Choice

In a market where a positive externality is present,the effect of a government subsidy would be to ensure:

• A) a more fair distribution of surplus.
• B) an efficient outcome.
• C) that those who enjoy the benefit receive the surplus.
• D) All of these statements are true.

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Definitions:

Skewed

A distribution that is not symmetrical, indicating that the data tends to lean towards the left (negatively skewed) or right (positively skewed) of the average.

Histogram

A graphical representation of the distribution of numerical data, usually showing frequency of data intervals.

Median

The middle value in a sorted list of numbers, effectively dividing the dataset into two halves.

Skewed

Describes a distribution of data that is not symmetrical, where one tail is longer or fatter than the other.