Exhibit 31-2 -Refer to Exhibit 31-2.This Graph Represents a Positive Externality Situation.Given

question 145

Multiple Choice

Exhibit 31-2

-Refer to Exhibit 31-2.This graph represents a positive externality situation.Given this,which of the two curves,X or Y,represents marginal social benefits and why?

• A) Curve X, because if there is a positive externality, negative external benefits are associated with it: social costs external benefits - private benefits, therefore the marginal social benefit curve must lie below the marginal private benefit curve.
• B) Curve X, because if there is a positive externality, external benefits are associated with it: social benefits = external benefits + private benefits, therefore the marginal social benefit curve must lie below the marginal private benefit curve.
• C) Curve Y, because if there is a positive externality, external costs are associated with it: social benefits = external costs + private benefits, therefore the marginal social benefit curve must lie above the marginal private benefit cost curve.
• D) Curve Y, because if there is a positive externality, external benefits are associated with it: social benefits = external benefits + private benefits, therefore the marginal social benefit curve must lie above the marginal private benefit curve.

Define and assess the poverty line and its implications for individuals and society.

Appreciate the demographic variations in poverty rates.

Analyze employment dynamics within low-income families.

Recognize offshoring and its effect on a country's economy.

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Definitions:

Synaptic Knob

The end of the axon branch.

Impulse Transmission

The process by which nerve signals are passed along neurons through the release and reception of neurotransmitters across synapses.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another in the nervous system.

Sciatic Nerve

The largest nerve in the human body, running from the lower back down through the buttock and into the lower limb, responsible for sensation and movement in the leg.