When a Positive Externality Generated from the Production of a Good

question 101

Multiple Choice

When a positive externality generated from the production of a good has not been internalized,then:

• A)the socially optimal quantity of output must be larger than the market level of output.
• B)the socially optimal quantity of output must be less than the market level of output.
• C)the socially optimal quantity of output must be equal to the market level of output.
• D)the socially optimal quantity of output can be either larger or smaller than the market level of output.

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Definitions:

Administer

To give a drug directly by injection, by mouth, or by any other route that introduces the drug into the body.

Sublingually

Refers to the method of administering medication under the tongue for absorption into the bloodstream.

Dissolved

The process by which a solid, liquid, or gas forms a solution in a solvent, becoming dispersed uniformly throughout the solvent.

Eat

The act of consuming food to provide nutritional support for the body.