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.

---

Definitions:

Urethra

The tube through which urine is discharged from the bladder to the exterior of the body in both sexes, and also conveys semen in males.

Penis

A male reproductive organ used for sexual intercourse and urination.

Corpus Albicans

A small, white scar tissue that forms in the ovary at the site of a ruptured follicle after ovulation.

Ruptured Follicle

The release of an ovum from a follicle in the ovary during the menstrual cycle, often referred to as ovulation.