When There Is a Positive Externality

question 143

Multiple Choice

When there is a positive externality,

• A) the private benefit received by consumers is greater than the external benefit.
• B) the social benefit received by consumers is greater than the private benefit.
• C) the private benefit received by consumers is greater than the private cost.
• D) the private benefit received by consumers is greater than the social benefit.

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Definitions:

Pharmaceutical Fraud

Illegal activities by drug companies, including marketing drugs for unapproved uses or producing counterfeit medication.

Unapproved Use

Usage of a product or service in a manner not sanctioned or authorized by official guidelines or regulations.

Deregulation

is the process of reducing or eliminating government rules and restrictions on business activities, with the aim of increasing efficiency and promoting competition within industries.

Airline Prices

The cost of air travel tickets, influenced by various factors including fuel costs, demand, seasonality, and competition.