If the Consumption of Good Generates an External Benefit, Then

question 43

Multiple Choice

If the consumption of good generates an external benefit, then the market equilibrium quantity:

• A)will be socially optimal.
• B)will be less than the socially optimal quantity.
• C)will be greater than the socially optimal quantity.
• D)could be either less than or greater than the socially optimal quantity.

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Definitions:

Morning Bias

A tendency to show more favorable reactions or evaluations in the morning due to biological or psychological factors.

Less Conscientious

relates to individuals who tend to be less careful, diligent, and organized in their personal or professional life.

Signalling Theory

Job applicants interpret their recruitment and selection experiences as cues or signals about unknown characteristics of a job and an organization and what it will be like to work in an organization.

Harshness

The quality of being extremely strict or severe in conditions or treatment.