Positive Externalities Arise When

question 320

Multiple Choice

Positive externalities arise when

• A) an unprofitable firm is shut down.
• B) a profitable firm is regulated.
• C) tax rates are reduced.
• D) production of a good generates benefits that spill over to third parties.

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Definitions:

British Pounds

The official currency of the United Kingdom, known as GBP (Great Britain Pound).

Flexible Exchange Rates

A system where the value of a currency is allowed to fluctuate according to the foreign exchange market without direct interference by the country's government.

Exporting

The act of selling goods or services produced in one country to another country.

Importing

The act of bringing goods or services into one country from another for sale.