A Positive Externality

question 477

Multiple Choice

A positive externality

• A)causes the product to be overproduced.
• B)provides an additional benefit to market participants.
• C)benefits consumers because it results in a lower equilibrium price.
• D)is a benefit to a market bystander.

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Definitions:

Deregulation

The decrease or removal of governmental control in a specific sector, typically implemented to enhance competitive conditions within that sector.

Industrial Policy

Government measures aimed at improving the competitive stance and capabilities of domestic industries.

Extensive Experiments

A thorough or wide-ranging series of tests or investigations conducted to explore a hypothesis or understand a phenomenon better.

Social Regulation

Policies designed to protect Public welfare, including health, safety, and the environment.