Which of the Following Statements Is NOT True of External

question 223

Multiple Choice

Which of the following statements is NOT true of external benefits?

• A) External benefits lead to an underallocation of resources to the production of the good that has the external benefit.
• B) External benefits lead to a price in the market that is too high.
• C) External benefits lead to too few of the goods that have the external benefit being produced.
• D) External benefits are a good thing for the allocation of resources because people are getting something at no cost.

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Definitions:

Support System

A network of individuals or groups that provides emotional, informational, and practical assistance.

Chronic Illness

A long-term health condition that may not have a cure and requires ongoing management of symptoms.

Intervention

An action or process of intervening, often aimed at improving a health condition or preventing adverse outcomes.

Best Practice

Techniques or methodologies that, through experience and research, have reliably led to desired or optimum outcomes.