If Government Associates an External Cost with the Production of a Good

question 120

Multiple Choice

If government associates an external cost with the production of a good or service, it may correct for the misallocation of resources by shifting the

• A)supply curve to the right.
• B)demand curve to the left.
• C)supply curve to the left.
• D)demand curve to the right.
• E)supply and demand curves to the left.

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Definitions:

Ileus

A temporary cessation of bowel motility, leading to obstruction symptoms without a physical blockage in the intestines.

Peristalsis

The involuntary constriction and relaxation of the muscles in the intestine or another canal, creating wave-like movements that push contents forward.

Anemia

A condition in which there is a deficiency of red cells or of hemoglobin in the blood, leading to fatigue, weakness, and shortness of breath.

Hemoglobin and Hematocrit

Hemoglobin is a protein in red blood cells carrying oxygen, whereas hematocrit is the ratio of the volume of red cells to the total volume of blood.