-(Exhibit: Correcting for Market Failure: External Cost) Assume That There

question 185

Multiple Choice

-(Exhibit: Correcting for Market Failure: External Cost) Assume that there is an external cost involved, as illustrated in the exhibit. If the government intervenes to correct for the external cost, the new _______ will now reflect _______ and _______ cost.

• A) supply curve S₁; private; external
• B) supply curve S₂; private; no external
• C) supply curve S₂; private; external
• D) demand curve (not shown); external; no private

---

Definitions:

High-Risk Sexual Behaviors

Sexual activities that increase the likelihood of contracting sexually transmitted infections or resulting in unintended pregnancies.

Spread

Refers to the process or act of extending, opening, or unfolding something to cover a larger area or increase its reach.

Male Condoms

A contraceptive device made of latex or other materials that is worn over the penis during sex to prevent pregnancy and reduce the risk of sexually transmitted infections.

Consistent Use

The regular application or practice of a task, tool, or principle over time to ensure reliability or improve efficiency.