If Consuming a Good Creates a Positive Externality,_____

question 86

Multiple Choice

If consuming a good creates a positive externality,_____

• A)the marginal private benefits from consuming the good exceed the marginal social benefits.
• B)the marginal social benefits from consuming the good exceed the marginal private benefits.
• C)the private demand for the good is equal to the marginal social benefit.
• D)the private demand for the good is greater than the marginal social benefit.
• E)the private demand curve for the good shifts to the right to coincide with the marginal social benefit curve.

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Definitions:

Welders

Professionals skilled in joining metal parts together by melting and fusing them using various welding techniques.

Machinists

Skilled workers who operate machine tools to fabricate parts and instruments.

Labor Supply

The total hours that workers wish to work at a given wage rate, in a given time period.

Payroll Tax

Taxes levied on employers or employees, and are based on the salary or wages of employees. These taxes fund social security and healthcare programs.