When Consumption of a Good Creates Positive Externalities

question 47

Multiple Choice

When consumption of a good creates positive externalities,

• A)the private demand curve shifts rightward
• B)the private demand curve shifts leftward
• C)the private demand curve is below the marginal social benefit curve
• D)the private demand curve is above the marginal social benefit curve
• E)the equilibrium quantity determined by the free private market is too high

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Definitions:

Gap Junction

Specialized intercellular connections between a multitude of animal cell-types that permit the direct transfer of chemical and electrical signals.

Striations

Linear marks, slight ridges, or grooves on a surface, often characteristic of muscle fibers or certain types of rock.

Epithelial

Pertaining to the epithelium, a layer of cells covering the body surfaces, lining body cavities and forming many glands.

Connective

Often refers to connective tissue in biology, which supports, binds together, or separates other tissues or organs of the body.