The Graph Shown Displays a Market with an Externality

question 129

Multiple Choice

The graph shown displays a market with an externality. Which areas represent deadweight loss?

• A)A + D
• B)D + E
• C)C + F
• D)B + C

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Definitions:

Dissociation

A split in consciousness, which allows some thoughts and behaviors to occur simultaneously with others.

Sensory Adaptation

The phenomenon by which sensory receptors become less sensitive to constant stimuli over time, allowing organisms to adapt to their environments.

Nociceptors

Sensory receptors found throughout the body that respond to potentially harmful stimuli by sending signals to the brain, resulting in the perception of pain.

Neural Impulses

Electrical signals that transmit information along the neurons in the nervous system.