Which of the Following Is True of a Positive Externality

question 29

Multiple Choice

Which of the following is true of a positive externality?

• A) Some costs are borne by a third party.
• B) The government can use taxes to move the market to the social optimum.
• C) There are no internal benefits.
• D) Some benefits accrue to a third party.
• E) Its existence always requires corrective measures by the government.

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Definitions:

Sanction

A penalty for norm violation or a reward for norm adherence.

Culture Shock

A feeling of disorientation or discomfort experienced by someone who is suddenly subjected to an unfamiliar culture, way of life, or set of attitudes.

Stages

Stages refer to distinct phases or periods in the development or process of something, often used in contexts such as human development, project management, or historical progression.

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