Use the Following to Answer Question(s): Correcting for Market Failure

question 46

Multiple Choice

Use the following to answer question(s) : Correcting for Market Failure: External Cost

-(Exhibit: Correcting for Market Failure: External Cost) Assume that there is an external cost involved as illustrated in the Exhibit.When the government intervenes to correct for the external cost, the output will _______ from _______ to _______ .

• A) fall; W; R
• B) increase; W; R
• C) fall; R; W
• D) fall; W; 0

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Definitions:

Equilibration

A cognitive development process described by Jean Piaget in which individuals reconcile new information with their existing cognitive schemas, achieving a balance or equilibrium between assimilation and accommodation.

Intellectual Growth

The process of acquiring knowledge, understanding, and critical thinking skills, leading to the development of the mind.

Accommodation

In cognitive psychology, the process of adjusting existing cognitive schemas, perceptions, and understandings to incorporate new information.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.