Which of the Following Is True of Markets Characterized by Positive

question 130

Multiple Choice

Which of the following is true of markets characterized by positive externalities?

• A)Social value exceeds private value, and market quantity exceeds the socially optimal quantity.
• B)Social value is less than private value, and market quantity exceeds the socially optimal quantity.
• C)Social value exceeds private value, and market quantity is less than the socially optimal quantity.
• D)Social value seldom exceeds private value; therefore, social quantity is less than private quantity.

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Definitions:

Old Country

often used to refer to the original homeland of immigrants or their ancestors, especially in a nostalgic or affectionate manner.

Immigrants

Individuals who move from one country to another with the intention of settling in the new country, often in pursuit of better opportunities, safety, or family reunion.

Gilded Age

A term that describes the late 19th century in the United States, a period marked by rapid economic growth, industrialization, and ostentatious displays of wealth.

Bosses

Individuals who are in charge of or manage others in a workplace setting.