-The Figure Above Shows the Market for a Good with an External

question 29

Multiple Choice

-The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity is ________ units and the equilibrium price is ________ per unit.

• A) 10; $100
• B) 8; $150
• C) 10; $150
• D) 10; $250
• E) 8; $300

Understand the impact of business ownership forms on control, decision-making, and regulatory obligations.

Recognize how businesses are acquired and their implications for ownership and control.

Describe the concept of unlimited liability and identify which forms of business are associated with it.

Understand the implications of personal income taxation on sole proprietorship earnings.

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Definitions:

Command Economy

An economy in which a central government either directly or indirectly sets output targets, incomes, and prices.

Labor

Labor describes the human exertion (whether physical or mental) that is applied to the production of goods and services.

Capital

Assets used for the production of goods and services, such as machinery, buildings, and equipment.

Bumper Crop

An unusually large harvest of a particular crop, often due to favorable growing conditions, exceeding average yields.