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The Net Increase to Total Surplus When a Positive Externality

Question 56
Multiple Choice

The net increase to total surplus when a positive externality is corrected is due to: A) the transfer of surplus from those affected by the externality to the consumer. B) the increased number of units bought and sold in the market. C) the transfer of surplus from the consumer to those affected by the externality. D) None of these statements is true.

Related questions
Q 57
When a positive externality is present in a market,the quantity consumed: A) is always more than the socially optimal quantity. B) is the same as the socially optimal quantity. C) is often more than the socially optimal quantity. D) is less than the socially optimal quantity.
Q 58
If it's possible to eliminate the problems created by externalities,why do they persist? A) Correcting externalities would always reduce total surplus. B) It is difficult to measure external benefits and costs. C) The benefits of correcting the externalities generally exceed the costs. D) None of these statements is true.
Q 59
If it's possible to eliminate the problems created by externalities,why do they persist? A) It can be difficult to coordinate the millions of market participants. B) Creating a more efficient solution does not mean it will have a fair distribution of that surplus. C) They can be diffuse, complex, and hard to control. D) All of these statements are true.
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