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Question 2 (1 point) A positive externality results in the market quantity being less than the socially optimal quantity True

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Answer #1

1 - True

With the presence of the positive externalities , the production and the consumption , both are below the socially optimal level.

2 - Option A

National defence

The people cannot be excluded from using it. It is non excludable.

The other goods are upon the wish of person to use or not. Hence they are not public goods.

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