Refer to the Graph Given Below

question 91

Multiple Choice

Refer to the graph given below. The graph above shows the supply of and the demand for a public good.Which of the following statements is correct?

• A)The supply curve reflects the marginal cost of producing each unit of the good, and the demand curve reflects the marginal benefit of consuming each unit of the good.
• B)The demand curve reflects the marginal cost of producing each unit of the good, and the supply curve reflects the marginal benefit of consuming each unit of the good.
• C)There will be an overallocation of resources at output level Q₁.
• D)There will be an underallocation of resources at output level Q₃.

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Definitions:

Extrinsic Motivation

Motivation that is driven by external rewards, such as money, praise, or recognition, rather than internal satisfaction.

Self-Determination

The understanding of skills, knowledge, and strengths that enable a person to make choices and initiate work tasks.

Intrinsic Motivation

Motivation that is driven by an interest or enjoyment in the task itself, rather than external pressures or rewards.

Need for Competence

The desire to interact effectively with the environment, to master tasks, and to achieve proficiency.