Multiple Choice
Which of the following statements is NOT true?
A) If the purchase of a good involves a positive externality, then the marginal social benefit exceeds the marginal private benefit.
B) If the purchase of a good involves a positive externality, then the marginal external benefit is positive.
C) If the purchase of a good involves a positive externality, then there is no deadweight loss.
D) If the purchase of a good involves a positive externality, then the quantity purchased is less than socially optimal.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The extra benefit received by everyone in
Q2: The marginal social benefit is the sum
Q3: Use Figure: Negative Externality and Deadweight Loss
Q4: _ refers to the situation where markets
Q5: Use Figure: Negative Externality and Deadweight Loss
Q7: If the marginal private benefit from consuming
Q8: If Raj buys car insurance and then
Q9: Use Figure: Positive Externalities and Deadweight Loss.
Q10: Because public goods are both nonrival and
Q11: Which of the following statements is TRUE?<br>A)