Positive Externalities Are _____ Because Their Producers Have No Incentive

question 22

Multiple Choice

Positive externalities are _____ because their producers have no incentive to take the _____ into account.

• A)oversupplied;external cost
• B)undersupplied;external benefit
• C)oversupplied;external benefit
• D)undersupplied;external cost

Grasp the concept of excess burden and how it relates to the efficiency of a tax system.

Understand the benefits-received principle in the context of tax fairness and efficiency.

Understand the definitions and types of misrepresentation in contract law.

Recognize the different remedies available for victims of misrepresentation and the conditions under which each remedy applies.