When Consuming a Good Creates Positive Externalities,_____

question 17

Multiple Choice

When consuming a good creates positive externalities,_____

• A)the private demand for the good increases.
• B)the private demand for the good decreases.
• C)the private demand curve overstates the marginal social benefit of the good.
• D)the private demand curve understates the marginal social benefit of the good.
• E)the equilibrium quantity traded of the good increases without government intervention.

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Definitions:

Wages and Salaries

The financial compensation received by employees for their labor, typically determined on an hourly, daily, or contractual basis.

Labor's Share

The segment of a country's income or production assigned to employees through wages, salaries, and perks.

Overall Efficiency

The effectiveness with which a system, such as an economy or a production process, utilizes resources to achieve its objectives, maximizing output with minimal waste.

Operations

The day-to-day activities involved in managing a business, including production, logistics, and delivery of goods and services.