A Positive Externality Exists Whenever

question 18

Multiple Choice

A positive externality exists whenever

• A) there are no internal costs.
• B) production of a good creates an external cost.
• C) production of a good creates an external benefit.
• D) production of a good has no social cost.
• E) production of a good has no social benefit.

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Definitions:

Costly Temptations

Unnecessary expenses or indulgences that can detract from long-term financial goals and stability.

Altruistic Behaviors

Acts motivated by the intention to help or benefit another individual or group of individuals without expectation of benefit for oneself.

Impulse Buying

The act of purchasing items on the spur of the moment without premeditation, often triggered by emotions or external stimuli.

Shelving Costs

Expenses incurred by businesses for the display and storage of products on shelves in retail stores or warehouses, as part of managing inventory and maximising product exposure to consumers.