Exhibit 31-4 -Refer to Exhibit 31-4.If a Negative Externality Exists,then the External

question 36

Multiple Choice

Exhibit 31-4

-Refer to Exhibit 31-4.If a negative externality exists,then the external costs associated with the negative externality equal the distance between points __________,and the socially optimal output is __________.

• A) A and C; Q₂
• B) D and B; Q₁
• C) C and B; Q₂
• D) A and B; Q₂
• E) none of the above

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body undergoes while under stress, according to Hans Selye.

Alarm Reaction

The initial stage of the stress response, where the body mobilizes resources to confront a stressor.

Resistance

The refusal to accept or comply with something; in a psychological context, it may refer to an individual's unconscious defense mechanisms against certain thoughts or realities.

Exhaustion

A state of extreme physical or mental fatigue, usually resulting from stress or overwork.