A Positive Externality Results When

question 155

Multiple Choice

A positive externality results when

• A) economists are sure that a good or service provides benefits to consumers.
• B) someone pays for a good or service even though she is not directly affected by the production or consumption of it.
• C) when people who live in one country benefit from the production of a good or service that occurs in another country.
• D) people who are not directly involved in producing or paying for a good or service benefit from it.

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Definitions:

Incremental Value

The additional value or benefit gained from undertaking a new project or investment, compared to not doing it.

Cash Deal

A type of financial transaction where the payment for goods or services is made in cash at the time of the deal, without using credit.

Incremental Value

The additional value generated by undertaking a particular action, such as an investment or project.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including both public investors and company officers or insiders.