Exhibit 30-4 ​

question 152

Multiple Choice

Exhibit 30-4
​

-Refer to Exhibit 30-4. 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:

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved, in various contexts including business, therapy, and medicine.

Threats

Expressions or actions that aim to cause harm or force compliance, often used as a means of control or coercion.

Promises

Commitments or assurances given by one party to another about the occurrence or non-occurrence of certain future events.

Physical Proximity

The spatial closeness or distance between two or more objects or individuals, which can influence interactions and relationships.