When There Is a Positive Externality

question 143

Multiple Choice

When there is a positive externality,

• A) the private benefit received by consumers is greater than the external benefit.
• B) the social benefit received by consumers is greater than the private benefit.
• C) the private benefit received by consumers is greater than the private cost.
• D) the private benefit received by consumers is greater than the social benefit.

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Definitions:

Acceptable Error

The margin of error or deviation from a standard value that is deemed tolerable within specific contexts, such as measurements or quality control.

Confidence

A measure of the degree to which one is certain about a particular prediction or outcome.

Predetermined Time

A technique in time and motion study where standard times are assigned to basic motions and tasks, used for setting standard times for work activities.

Standard Deviation

A numerical indicator that calculates the spread or variability among a collection of data points.