Refer to the Diagrams

question 126

Multiple Choice

Refer to the diagrams. With the industry structures represented by diagram

• A)(B), there will be allocative efficiency.
• B)(A), economic profit can persist in the long run.
• C)(B), output will be less than in diagram (A).
• D)(B), output will be the same as in diagram (A).

Explain the significance of external costs and their impact on the environment.

Recognize the role of government in addressing externalities and providing public goods.

Understand the concept of mixed economies and the balance between private and public sectors.

Explain the basic economic questions every country must answer due to resource scarcity.

---

Definitions:

Kerosene

A flammable hydrocarbon liquid commonly used as a fuel in heating, jet engines, and lighting, extracted from petroleum.

Jet Fuel

A type of aviation fuel designed for use in aircraft powered by gas-turbine engines.

Industrial Chemicals

Chemical compounds produced in large quantities for use in various industries, ranging from manufacturing to agriculture.

Crude Oil Refining

The industrial process of transforming crude oil into useful petroleum products such as fuel, gasoline, and diesel.