If External Benefits Are Taken into Account in the Market

question 141

Multiple Choice

If external benefits are taken into account in the market

• A) the demand curve would shift to the left.
• B) the supply curve would shift to the left.
• C) the demand curve would shift to the right.
• D) the supply curve would become vertical.

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Definitions:

Natural Experiments

Research designs that involve observing the effects of naturally occurring variables or events, as opposed to manipulations made by the researcher.

Quasi-experiments

Research designs that attempt to establish cause-and-effect relationships but lack the element of random assignment to treatment or control groups.

External Validity

The extent to which the results of a study can be generalized or applied to contexts outside of the experimental conditions.

Matched Control Group

In experimental research, a group of subjects closely matched to the experimental group in key variables but not receiving the intervention.