If Positive Externalities Are Present in the Production of a Good

question 36

Multiple Choice

If positive externalities are present in the production of a good, society will:

• A)produce too much of the good because the marginal private benefit to consumers is less than the marginal social benefit.
• B)produce too little of the good because the marginal private benefit to consumers is greater than the marginal social benefit.
• C)produce too much of the good because the marginal private benefit to consumers is greater than the marginal social benefit.
• D)produce too little of the good because the marginal private benefit to consumers is less than the marginal social benefit.
• E)produce too much of the good because of the free-rider problem.

Understand the implications of political and legal policies on international marketing strategies.

Explain the concept of social classes and their influence on consumer buying behavior.

Understand the components and significance of planning in human resources management.

Identify the role and characteristics of external recruitment sources including headhunters.

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Definitions:

Wortman and Brehm

Researchers known for their work in the fields of psychology, particularly in the areas of social psychology and reactions to loss.

Fixed Traits

Characteristics, personality attributes, or abilities believed to be inherent and unchangeable over time.

Entity Theorists

Individuals who believe that personal qualities such as intelligence and talent are fixed and unchangeable.

Incremental Theorists

Individuals who believe that abilities can be developed through dedication and hard work, emphasizing growth and learning.