-In the Above Figure, Market Equilibrium at Point E Yields

question 52

Multiple Choice

-In the above figure, market equilibrium at point E yields the quantity X. The quantity is the socially optimal quantity. Point E indicates that currently there is

• A)a negative externality.
• B)a positive externality.
• C)a public good.
• D)a positive externality with subsidy.

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Definitions:

Stable Internal

A belief that the cause of an event is due to stable, enduring factors within an individual.

Availability Heuristic

The tendency to assume that information that comes easily to mind (or is readily available) is more frequent or common.

Locus Of Causality

The position or place within an individual that determines where the cause of behavior is perceived to originate, whether internally (within oneself) or externally (outside factors).

Internal

Pertaining to or situated within something; intrinsic.