If There Are External Benefits Associated with the Consumption of a Good

question 42

Multiple Choice

If there are external benefits associated with the consumption of a good or service:

• A) The private demand curve will overestimate the true demand curve
• B) The private demand curve will underestimate the true demand curve
• C) Consumers will be willing to pay for all these benefits in private markets
• D) The market demand curve will be the vertical summation of the individual demand costs

---

Definitions:

Fake Good

A response bias wherein individuals present themselves in an overly positive manner, often to meet social expectations or gain favor.

SASSI

A self-report screening tool designed to identify individuals who have substance dependency problems based on their responses to various questions.

Substance Dependency

A condition characterized by the compulsive use of substances (such as drugs or alcohol) despite harmful consequences, leading to physical and psychological dependence.

Electra Complexes

A psychoanalytic theory describing a girl's psychosexual competition with her mother for possession of her father, akin to the Oedipus complex in boys.