When a Positive Externality Exists,the Marginal Social Demand Curve

question 75

Multiple Choice

When a positive externality exists,the marginal social demand curve

• A)is the same as the market supply curve
• B)is the same as the market demand curve
• C)lies below the market demand curve
• D)lies above the market demand curve
• E)lies below the market supply curve.

---

Definitions:

Schematization

The process of organizing information or experiences into schemas, which are mental structures that represent some aspect of the world.

Observational Learning

Learning through watching the behavior of others.

Classical Conditioning

A conditioning method in which two stimuli are consistently paired together; over time, the reaction that was once generated by the second stimulus is drawn out by the first stimulus instead.

Modeling

The act of learning behavior, attitudes, or skills by observing and imitating others, as proposed in social learning theory.