Products That Create External Benefits Are

question 197

Multiple Choice

Products that create external benefits are:

• A) overconsumed because the private benefits exceed the private costs.
• B) underconsumed because consumers only consider the private benefits of consumption.
• C) neither overconsumed nor underconsumed because the marginal benefits equal the marginal costs.
• D) underconsumed because the social costs exceed the social benefits.

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Definitions:

Cross-lagged

A statistical technique used in time series analysis to determine the relationship between variables at different points in time.

Cohort

A group of subjects who share a defining characteristic, often studied over a period of time to observe changes and outcomes.

Demographic Question

A demographic question seeks information about the characteristics of respondents, such as age, gender, ethnicity, or income, often used in research to analyze trends within specific population segments.