If the Consumption of a Good Yields External Benefits,then

question 106

Multiple Choice

If the consumption of a good yields external benefits,then

• A)The social demand is greater than the market demand.
• B)The social demand is equal to the market demand.
• C)The social demand is less than the market demand.
• D)There is neither social demand nor market demand for the gooD.Social demand is equal to market demand plus externalities if external benefits exist.

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Definitions:

Share Capital

The amount of money a company has raised by issuing shares to shareholders.

Bargain Purchase

A transaction in which a buyer acquires assets, or occasionally a business, for a price considered to be significantly lower than the fair market value.

Intragroup Services

Services rendered by one entity within a larger corporate group to another entity within the same group.

Profit

The financial gain achieved when the amount of revenue gained from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.