If the Social Benefit of Consuming a Good or a Service

question 161

Multiple Choice

If the social benefit of consuming a good or a service exceeds the private benefit,

• A)a negative externality exists.
• B)the market achieves economic efficiency.
• C)a positive externality exists.
• D)the sum of consumer surplus and producer surplus is maximised.

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Definitions:

Trade

The process of purchasing, selling, or trading goods and services among individuals or nations.

Europeans

The inhabitants of Europe or individuals of European descent.

Horses

Domesticated mammals known for their speed, strength, and ability to be ridden, used historically for transportation, work, and military purposes.

Symbolic Leader

A figurehead who represents the values, aspirations, or ideals of a group, nation, or organization but may not have actual power or authority.