When production of a good creates an external benefit,Group of answer choicesthere is a positive externality.it results in the tragedy of the commons.there is a negative externality.a club good is being produced.too much of the good is being produced.

If the social benefit of consuming a good or a service exceeds the private benefit,Group of answer choicesthe market achieves economic efficiency.a negative externality exists.a positive externality exists.the sum of consumer surplus and producer surplus is maximised.

Tragedy of the commons arises because: Group of answer choicesExternal benefits are under-producedPublic goods are over-consumedCongestion reduces private benefitsThose consuming common resources don’t consider collective cost

In the case of a negative                externality, there’s                of a good, resulting in a                to society, which might be remedied by imposing a                on the good.Group of answer choicesconsumption; overconsumption; loss; taxproduction; overconsumption; gain; taxproduction; overproduction; loss; subsidyconsumption; underconsumption; loss; tax

A good that is provided by governments because it generates external economies is called a Group of answer choicescollective goodpositive goodexternal goodmerit good

If in a market the last unit of output was sold at a price higher than marginal costGroup of answer choicesproducers are better off producing more.consumers are better off if less of the product is sold.social welfare is not maximised.the unit increased total profit.