Exhibit 30-5 ​

question 113

Multiple Choice

Exhibit 30-5
​

-Refer to Exhibit 30-5. If a positive externality exists, then the market ____________ output by the amount ________________.

• A)underproduces; Q₁
• B)overproduces; Q₂
• C)overproduces; Q₂ - Q₁
• D)underproduces; Q₂ - Q₁

---

Definitions:

Undoing

A psychological defense mechanism where an individual attempts to 'undo' an unacceptable thought or action by acting in a manner that counterbalances or negates it.

Drinking Binge

A pattern of drinking alcohol that brings blood alcohol concentration to 0.08 grams percent or above, typically occurring over a short period of time.

Constructive Coping

Strategies employed to deal with stress in a healthy and productive manner.

Realistic Appraisals

The process of assessing a situation or oneself in a manner that is true to reality and grounded in factual observation.