A Positive Externality Results When

question 155

Multiple Choice

A positive externality results when

• A) economists are sure that a good or service provides benefits to consumers.
• B) someone pays for a good or service even though she is not directly affected by the production or consumption of it.
• C) when people who live in one country benefit from the production of a good or service that occurs in another country.
• D) people who are not directly involved in producing or paying for a good or service benefit from it.

---

Definitions:

Body Mass Index

A numerical measurement calculated from height and weight that is used to assess whether a person is underweight, normal weight, overweight, or obese.

Overweight

A condition characterized by an individual having more body fat than is optimally healthy for their height and build.

Evolutionary Approach

A perspective in various disciplines, including psychology and biology, that seeks to explain traits, behaviors, and strategies as adaptations that have evolved to solve reproductive and survival problems.

Drive-Reduction Approach

A theory in psychology that posits behavior is motivated by the desire to reduce internal tension caused by unmet biological needs, such as hunger or thirst.