A Result of a Positive Externality in the Production of a Good

question 158

Multiple Choice

A result of a positive externality in the production of a good is that

• A) the price system will over-allocate resources to the production of that good or service.
• B) the price system will under-allocate resources to the production of that good or service.
• C) the market supply will be too high.
• D) the market demand will be too high.

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Definitions:

Personal Constructs

The mental frameworks and beliefs that individuals use to interpret events and understand the world around them.

Subconscious Thoughts

Ideas and feelings that are not in immediate awareness but can influence behavior and decision-making.

Repressed Emotions

Emotions that are unconsciously excluded from conscious thought or awareness, often due to their discomforting nature or conflict with one's self-image.

Cognitive Movement

Refers to changes or developments in an individual's mental processes, including learning, perception, and problem-solving.