Which of the Following Is True

question 133

Multiple Choice

Which of the following is true?

• A)​The private market provides too much of goods that generate external benefits.
• B)​In the case of external benefits, if we could add the benefits that are derived by non-paying consumers, the supply curve would shift to the right, increasing output.
• C)​In the case of external benefits, a tax equal to external benefits would result in an efficient level of output.
• D)​In the case of public goods, when people act as free-riders, some goods having benefits greater than costs will not be produced.

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Definitions:

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed.

Reverse Discrimination

Reverse discrimination refers to the unfair treatment of members of a majority or dominant group, often as a result of attempting to correct historical inequalities towards minority groups.

Employment Equity Programs

Developed by employers to undo past employment discrimination or to ensure equal employment opportunity in the future. Called affirmative action programs in the United States.

Secondary Dimensions

Aspects of a person’s identity or background that are less visible or changeable, such as education level, marital status, religious beliefs, and geographic location, affecting their experience of the world.