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:

Federal Taxes

Taxes collected by the federal government, involving income tax, payroll taxes, and various other taxes.

State And Local Taxes

Various forms of taxation imposed by state, regional, and local governments, including income, sales, property, and other taxes.

Progressive

A tax system in which the tax rate increases as the taxable amount increases, often aimed at reducing income inequality.