The Graph Shown Displays a Market with an Externality

question 94

Multiple Choice

The graph shown displays a market with an externality. Which of the following statements is true?This shows a negative consumption externality.The efficient quantity is 7 units.The size of the externality is $12 per unit.

• A)I and III only
• B)III only
• C)II only
• D)I, II, and III

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Definitions:

Auscultation

The act of listening to the sounds made by internal organs, particularly the heart and lungs, usually with a stethoscope, as a part of medical diagnosis.

Palpation

The method of examining the body by feeling organs or tissues to assess their size, shape, firmness, or location.

Grimaces

Facial expressions often involving the contortion of the face to indicate pain, disgust, or disapproval.

Inference

The process of drawing conclusions or making logical deductions based on available evidence or premises.