When the Marginal Private Benefit of an Activity Does Not

question 2

Multiple Choice

When the marginal private benefit of an activity does not equal the marginal social benefit,which of the following exists?

• A)Positive externality
• B)Negative externality
• C)Externality in consumption
• D)Externality in production
• E)External cost

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Definitions:

Sterile Glove

Medical-grade gloves that have been sterilized to ensure they are free from microorganisms, used in surgical procedures and settings requiring strict asepsis.

Dressing Change

The process of replacing an old wound dressing with a new one to promote proper healing and prevent infection.

St John's Wort

An herbal plant often used in the treatment of depression, anxiety, and sleep disorders due to its believed natural antidepressant properties.

Anaesthetic Agents

Drugs used to induce anesthesia, reducing or eliminating sensation, typically to facilitate surgery or other painful procedures.