SECTION A: MICROECONOMICS Consider the following statements. State whether they are true, false or uncertain and explain your answer. Your mark will depend on the accuracy and content of your explanation. (Note that this means no marks will be awarded for only writing true, false or uncertain.) You should include diagrams where they help your explanation.

Question: A positive consumption externality means that too much of a good will be produced, at too low a price, compared to the socially optimal point.