If There Are Positive Externalities Associated with the Consumption of a Good

question 76

Multiple Choice

If there are positive externalities associated with the consumption of a good or service:

• A) the private demand curve will overestimate the true demand curve.
• B) the private demand curve will underestimate the true demand curve.
• C) consumers will be willing to pay for all these benefits in private markets.
• D) the market demand curve will be the vertical summation of the individual demand costs.

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Definitions:

Linguistic Relativity Hypothesis

A principle suggesting that the structure of a language influences its speakers' worldview or cognition, and thus people's perceptions are relative to their spoken language.

Behaviourist Theory

A psychological perspective focusing on observable behaviors and the ways they're learned through interactions with the environment.

Nativist Theory

The perspective that certain skills or abilities are "native" or hard-wired into the brain at birth, emphasizing the innate aspects of development.

Learning Theory

A framework that describes how knowledge, skills, attitudes, and behaviors are acquired, processed, and retained.