Consider a market in which a positive production externality is present. Which of the following statements is true? Select one: O A If the government does not intervene, no deadweight loss is generated. O B. None of the other answers. O. The marginal social cost is greater than the marginal cost faced by the producer at the market equilibrium. O D. The socially efficient quantity is less than the market equilibrium quantity. O E The consumers of the good take into account all of the benefits of the good being produced and consumed.

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Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.