The Net Increase to Total Surplus When a Positive Externality

question 43

Multiple Choice

The net increase to total surplus when a positive externality is corrected is due to:

• A) the transfer of surplus from those affected by the externality to the consumer.
• B) the increased number of units bought and sold in the market.
• C) the transfer of surplus from the consumer to those affected by the externality.
• D) None of these statements is true.

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