Which of the Following Is True of Markets Characterized by Positive

question 130

Multiple Choice

Which of the following is true of markets characterized by positive externalities?

• A)Social value exceeds private value, and market quantity exceeds the socially optimal quantity.
• B)Social value is less than private value, and market quantity exceeds the socially optimal quantity.
• C)Social value exceeds private value, and market quantity is less than the socially optimal quantity.
• D)Social value seldom exceeds private value; therefore, social quantity is less than private quantity.

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Definitions:

Biological

Pertaining to the processes and phenomena of living organisms, or in a broader sense, related to the life sciences.

Self-regulation Theory

A theory that focuses on individuals' control of their own behavior and emotions, aiming for goal achievement.

Higgins's

Referring to the theories or models proposed by psychologist Tory Higgins, often related to self-discrepancy theory and motivation.

Prevention

Actions or measures taken to stop something undesirable, such as illness or accidents, from happening.