If the Production of a Good Generates a Positive Externality

question 64

Multiple Choice

If the production of a good generates a positive externality, then:

• A)production of the good is harmful.
• B)there will be deadweight loss at the market equilibrium quantity.
• C)total economic surplus will be maximized at the market equilibrium quantity.
• D)the government should tax producers of the good.

---

Definitions:

Germans

People originating from Germany, characterized by their culture, language, and historical contributions to various fields.

English Colonies

Territories in the Americas and other parts of the world that were under the control and administration of the English crown from the late 16th to early 18th centuries.

Mulatto Class

A historical term referring to a social class or group composed of people of mixed European and African ancestry, often associated with colonial and slave societies.

Spanish Empire

A historical empire that included territories and colonies across the globe, known for its vast reach and wealth in the 16th to 18th centuries.