Exhibit 31-4 -Refer to Exhibit 31-4.If a Negative Externality Exists,then Curve __________

question 121

Multiple Choice

Exhibit 31-4

-Refer to Exhibit 31-4.If a negative externality exists,then curve __________ represents the marginal social cost curve and the area __________ represents the market failure.

• A) 1; ACB
• B) 3; BCD
• C) 2; BCD
• D) 3; ACB
• E) 2; ACB

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Definitions:

Health-Care Insurance

A policy that covers the whole or part of the risk of a person incurring medical expenses, spreading the risk over numerous individuals.

Policymaking Process

The method by which governments and other authorities create and implement laws and regulations.

Affordable Health Care Act

A federal statute signed into law in 2010 aimed at expanding healthcare coverage, reducing healthcare costs, and improving system efficiency, commonly known as Obamacare.

Medicaid

A government health insurance program for individuals and families with low income and resources.