If the Social Benefit of Consuming a Good or a Service

question 161

Multiple Choice

If the social benefit of consuming a good or a service exceeds the private benefit,

• A)a negative externality exists.
• B)the market achieves economic efficiency.
• C)a positive externality exists.
• D)the sum of consumer surplus and producer surplus is maximised.

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Definitions:

Affective States

Emotional conditions or feelings that can affect perceptions, judgments, and behaviors.

Arousal

A state of heightened physiological and psychological activity or awareness, often induced by stimuli or situations.

Guilt

A psychological state that arises from the realization of causing harm or failing to meet moral standards.

Malnourished Children

Young individuals who suffer from poor nutritional status due to inadequate or unbalanced intake of nutrients, leading to health problems and developmental delays.