The Graphs Below Refer to Two Separate Product Markets

question 26

Multiple Choice

The graphs below refer to two separate product markets.Assume that society's optimal level of output in each market is Q₀ and that government purposely shifts the market supply curve from S to S₁in diagram (a) and from S to S₂ in diagram (b) .We can conclude that the government is correcting for:

• A)negative externalities in diagram (a) and positive externalities in diagram (b).
• B)positive externalities in diagram (a) and negative externalities in diagram (a).
• C)negative externalities in both diagrams.
• D)positive externalities in both diagrams.

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Definitions:

Biologically Unreal

A concept or entity that does not exist or cannot be explained within the confines of biological science.

Racial Hierarchies

A system of classification that ranks races or ethnic groups in a hierarchy based on perceived biology, cultural attributes, or perceived inferiority/superiority.

Biological Difference

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Neocolonialization

A term referring to the form of indirect control that developed countries exert over developing countries, often through economic, social, and cultural pressures, following the end of direct colonial rule.