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:

Timeframe

A timeframe refers to the specific period during which an event occurs or is planned to take place, often used in planning and scheduling contexts.

Required Rate Of Return

The lowest annual gain percentage that persuades individuals or firms to allocate resources to a particular security or project.

Market Rate Of Return

The average rate of return anticipated by investors in a particular market, benchmarked against existing interest rates or historical returns.

Dividend

A portion of a company's profits allocated by the board of directors to its shareholders.