a. Which of the following situations exhibits a positive externality? multiple choice 1 Alan purchases a new watch as a gift for his father. Sean spends the afternoon cleaning his garage. Richard renovates a dilapidated historic home in the center of town. b. When there is a positive externality associated with the market multiple choice 2 too little is produced. too much is produced. the socially optimal amount is produced. c. Governments may stimulate the economy to move toward the socially optimal output by multiple choice 3 taxing the product. subsidizing the product. implementing a price ceiling