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.

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Definitions:

Political Affairs

Refers to activities or policies related to governance, public administration, and the management of the state or nation.

Spanish-American War

A conflict between the United States and Spain in 1898, resulting in the U.S. gaining territories in the Pacific and the Caribbean, such as Puerto Rico, Guam, and the Philippines.

American Imperialism

A policy aimed at extending the political, economic, and cultural control of the United States government over areas beyond its boundaries.

Benevolent Power

A term used to describe a government or organization exercising power in a kind-hearted or benevolent manner, often with the aim to improve wellbeing.