An External Benefit in a Market Will Cause the Market

question 249

Multiple Choice

An external benefit in a market will cause the market to produce:

• A) more than the same market would produce in the presence of a negative externality.
• B) more than is socially desirable.
• C) less than is socially desirable.
• D) the socially optimal equilibrium amount.

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Definitions:

Southern Society

Refers to the cultural, economic, and social practices distinctive to the American South.

Andrew Johnson

The 17th President of the United States (1865-1869) who assumed office after the assassination of Abraham Lincoln and was the first president to be impeached, largely due to his lenient policies towards the Southern states after the Civil War.

Civil Rights

Legal provisions and protections relating to personal liberty and the right to participate in civic life without discrimination or repression.

Republican Party

A major political party in the United States, also known as the GOP (Grand Old Party), traditionally advocating for conservatism and fiscal policies.