In the Presence of Positive Externalities, a Market Will Charge

question 17

Multiple Choice

In the presence of positive externalities, a market will charge ______ and produce _____.

• A)the correct amount; the correct amount
• B)too much; the correct amount
• C)the correct amount; too little
• D)too little; too little

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Definitions:

Unemployed

Refers to individuals who are capable of working and willing to work but cannot find employment.

Misery Index

An economic indicator created by summing the unemployment rate and inflation rate, intending to measure economic discomfort within a country.

Financial Industry

A sector of the economy that includes businesses and institutions that provide financial services, such as banking, investment, and insurance.

Stimulus

Economic measures taken by the government to encourage growth or prevent economic slowdown, often through spending or tax cuts.