If a Market Is Characterized by a Positive Externality That

question 95

Multiple Choice

If a market is characterized by a positive externality that is not the result of a technology spillover,

• A)the socially optimal level of output is less than the equilibrium level of output, and the optimal price is greater than the equilibrium price.
• B)the socially optimal level of output is greater than the equilibrium level of output, and the socially optimal price is less than the equilibrium price.
• C)the socially optimal level of output is greater than the equilibrium level of output, and the socially optimal price is greater than the equilibrium price.
• D)the socially optimal level of output is less than the equilibrium level of output, and the socially optimal price is less than the equilibrium price.

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Definitions:

Rorschach Blot

A projective psychological test consisting of inkblots presented to a subject, whose interpretations of the shapes are analyzed to assess emotional function and personality.

Therapist

A professional trained to provide psychological treatment and support to individuals or groups.

Interpretation

The process of assigning meaning to information or experiences.

Rorschach Inkblots

The Rorschach Inkblots are a psychological test consisting of ten inkblots used to analyze an individual's personality characteristics and emotional functioning.