If Consuming a Good Creates a Positive Externality

question 189

Multiple Choice

If consuming a good creates a positive externality,

• A)marginal private benefits exceed marginal social benefits
• B)marginal social benefits exceed marginal private benefits
• C)private demand is equal to marginal social benefit
• D)private demand is greater than marginal social benefit
• E)the private demand curve shifts to the right to coincide with the marginal social benefit curve

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Definitions:

Caloric Intake

The total number of calories consumed through food and beverages within a specific time period, indicating energy intake.

Metabolic Needs

The essential requirements for energy and nutrients necessary for an organism's growth, maintenance, and functions.

Moral Development

The process by which individuals learn and apply concepts of right and wrong behavior through various stages of life.

Social Responsibility

The obligation of individuals or organizations to act for the benefit of society at large, often emphasizing ethical behavior and actions that contribute to the wellbeing of others.