Table 10-2 the Following Table Shows the Private Value, Private Cost, and Cost

question 115

Multiple Choice

Table 10-2
The following table shows the private value, private cost, and social value for a market with a positive externality.
-Refer to Table 10-2. How large would a subsidy need to be in this market to move the market from the equilibrium level of output to the socially-optimal level of output?

• A)$3
• B)$5
• C)$7
• D)$9

---

Definitions:

Means-Tested Program

A government program designed to provide assistance to individuals or families whose income falls below a certain level, ensuring those who need financial help receive it.

Food Stamp Program

A government assistance program that provides low-income households with funds to purchase food, aiming to ensure nutritional standards are met.

Medical Costs

Expenses incurred for medical treatments, procedures, and examinations.

U.S. Government

The federal government of the United States, a constitutional republic comprising three branches: executive, legislative, and judicial.