Refer to the Information Provided in Table 24

question 67

Multiple Choice

Refer to the information provided in Table 24.4 below to answer the question(s) that follow.
Table 24.4
-Refer to Table 24.4. At an output level of $2,500, there is an unplanned inventory

• A) increase of $600 billion.
• B) decrease of $400 billion.
• C) change of $0.
• D) increase of $400 billion.

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Definitions:

External Benefits

Benefits resulting from a transaction that affect parties not directly involved in the transaction, often leading to positive outcomes for society.

External Costs

Costs of a transaction or activity that affect third parties who did not choose to incur that cost, often seen in environmental pollution.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product for which there are many substitutes.

External Benefit

A benefit that people other than the consumer or producer enjoy, resulting from a transaction or activity.