When a Positive Externality Is Present in a Market,total Surplus

question 20

Multiple Choice

When a positive externality is present in a market,total surplus is:

• A) higher when buyers only consider private costs.
• B) lower when buyers only consider private costs.
• C) lower when buyers consider social costs.
• D) None of these statements is true.

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Definitions:

Neuronal Membrane

The cell membrane surrounding a neuron, which controls the movement of substances in and out of the cell and facilitates electrical signaling.

Saltatory Conduction

Fast propagation of an action potential at successive nodes of Ranvier; saltatory means “leaping.”

Nodes Of Ranvier

Gaps in the myelin sheath around nerve fibers where the axon is exposed and action potentials are regenerated.

Sodium-Potassium Pumps

Membrane proteins that help maintain cellular homeostasis by actively transporting sodium out of cells and potassium into cells.