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:

Personality Development

The ongoing process of developing and enhancing one's personality through learning, experiences, and environment.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development where children, typically aged 6 to 12, develop a sense of competence through the mastery of tasks.

Psychosocial Crisis

A situation or period of life characterized by challenges in personal and social development, which Erik Erikson identified as part of his theory on the stages of psychosocial development.

Social Structure

The organized pattern of social relationships and social institutions that make up a society, influencing and limiting the choices and opportunities available to its members.