If a Good That Generates Positive Externalities Were Produced and Priced

question 58

Multiple Choice

If a good that generates positive externalities were produced and priced to take into account these spillover benefits,then its:

• A) price and output would increase.
• B) output would increase,but price would remain constant.
• C) price would increase and output would decrease.
• D) price would increase,but output would remain constant.

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Definitions:

Congressional Committee Framework

The organizational system of committees within the United States Congress, designed to facilitate detailed examination and discussion of legislative proposals.

Budget Process

A systematic method used by organizations or governments to allocate resources, assess revenues, and determine expenditures for a specific time period.

Marginal Propensity

The tendency of an individual or population to consume or save an extra unit of income.

Lump-Sum Taxes

Taxes that are a fixed amount, not varying with the income or wealth of the taxpayer, and are paid at one time instead of in installments.