According to Pigou,the Socially Optimal Quantity

question 39

Multiple Choice

According to Pigou,the socially optimal quantity

• A) is Q_O
• B) is Q_E
• C) eliminates area A+B+C+D.
• D) creates area E.

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Definitions:

Physiological Needs

Basic physical requirements for human survival, such as air, water, food, shelter, and sleep.

State Of Balance

A situation or condition in which different elements are in the correct proportions or in an equilibrium state.

Establish

To set up or found something on a firm or permanent basis, often referring to institutions, organizations, or systems.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and to maintain self-image.