Multiple Choice
If consuming a good creates a positive externality, _____.
A) the marginal private benefit from consuming the good exceeds the marginal social benefits
B) the marginal social benefit from consuming the good exceeds the marginal private benefits
C) the private demand for the good is equal to the marginal social benefit
D) the private demand for the good is greater than the marginal social benefit
E) the private demand curve for the good shifts to the right to coincide with the marginal social benefit curve
Correct Answer:

Verified
Correct Answer:
Verified
Q41: The following graph shows the optimal allocation
Q42: In order to increase a society's total
Q46: Which of the following is not used
Q49: A metal-stamping factory moves next to a
Q68: When using the economic efficiency approach to
Q79: If the marginal social benefit of consuming
Q113: The main objective of the Comprehensive Environmental
Q135: To achieve the socially optimal level of
Q146: Unpriced byproducts of production or consumption that
Q167: The Coase solution to the externality problem